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PhotogiBphic 

Sciences 
Corporation 


33  WEST  MAIN  STREET  ^^ 

WEBSTER,  NY    14580  S 

(716)  872-4'S03 


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CIHM/ICMH 

Microfiche 

Series. 


CIHIVI/ICMH 
Collection  de 
microfiches. 


Canadian  lijStitute  for  Historical  IVIicroreproductions  /  Institut  caradien  de  micror^productions  historiques 


vV 


1^ 


Technical  and  Dibliographic  Notes/Notes  techniques  et  bibliographiques 


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D 


D 
D 
D 

n 
n 


n 


Coloured  covers/ 
Couverture  de  couleur 


I      I    Covers  damaged/ 


Couverture  endommagee 


□    Covers  restored  and/or  laminated/ 
Couverture  restaur^e  et/ou  pelliculde 


n 


Cover  title  missing/ 

Le  titre  de  couverture  manque 

Coloured  maps/ 

Cartes  g^ographiques  en  couleur 


Coloured  ink  (i.e.  other  than  blue  or  black)/ 
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^ 


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obtenir  la  meilleure  image  possible. 


The 

POS: 

oft 
l!lm 


Ori( 

beg 

the 

sior 

oth( 

firs) 

sior 

or  il 


The 
thai 
TIN 
whi 

Mar 
diffi 
enti 
beg 
righ 
reqi 
met 


This  item  is  filmed  at  the  reduction  ratio  checked  below/ 

Ce  document  est  filmd  au  taux  de  reduction  indiqu^  ci-dessous. 

10X  14X  1SX  22X 


26X 


30X 


y 

12X 


16X 


20X 


24X 


28X 


32X 


The  copy  filmed  here  has  been  reproduced  thanl:s 
to  the  generosity  of: 

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Archives  of  Canada 


L'exemplaire  film6  tut  reproduit  grdce  d  la 
g6n6rosit6  de: 

La  bibliothdque  des  Archives 
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conformity  avec  les  conditions  du  contrat  de 
filmage. 


Original  copies  in  printed  paper  covers  are  filmed 
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d'impression  ou  d'illustration  et  en  terminant  par 
la  dernidre  page  qui  comporte  une  telle 
empreinte. 


The  last  recorded  frame  on  each  microfiche 
vhall  contair^  the  symbol  —h^I  meaning  "CON- 
TINUED "),  or  the  symbol  V  (meaning  "END"), 
whichever  applies. 


Un  des  symboles  suivants  apparaitra  sur  la 
dernidre  image  de  cheque  microfiche,  selon  le 
cas:  le  symbole  —^-  signifie  "A  SUIVRE'',  le 
symbole  V  signifie  "FIN". 


Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  iii  the  upper  left  hand  corn^*-,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
filmds  d  des  taux  de  reduction  diff^rents. 
Lorsque  le  document  est  trop  grand  pour  dtre 
reproduit  en  un  seul  cliche,  il  est  film6  d  partir 
de  Tangle  sup^rieur  gauche,  de  gauche  d  droite, 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  n^cessaire.  Les  diagrammes  suivants 
illustrent  la  mithode. 


1 

2 

3 

1 

2 

3 

4 

5 

6 

J 

i 


52D  Congress,  \     HOUSE  OF  EEPRESENTaTIVES.      (  Report 

)  No.  185. 


Isi  iiession 


"1 


/  l.L^l-^IA-iV- a-O-L     ^x,^o\^lt.     UmJA     Li 


^v-vv.**^- 


ti-i^ 


WATER   WAY   FROM  HEAD  OF   LAKE  SUPERIOR   TO   THE 

SEA.  ^ 


Fkbuuary  8,  1892. — Referred  to  the  House  Caloiidar  and  ordered  to  be  printed. 


Mr.  LiND,  from  tlie  Committee  on  Interstate  and  Foreign  Commerce, 

submitted  the  following 

■  REPORT: 

[To  accompany  H.  Res.  11.]  ;  > 

The  Committee  on  Interstate  and  Foreign  Commerce,  to  whom  was 
referred  the  joint  resolntioii  (R  Res.  11)  to  promote  the  improvement 
of  the  water  way  from  the  liead  of  Lake  Superior,  by  way  of  the  Welland 
and  St.  Lawrence  canals  and  St.  Lawrence  River,  to  the  sea,  respectfully 
report : 

Tlie  value  and  extent  of  the  eonnnene  of  the  Great  Lakes  has  been  so 
frequently  commented  upon  in  this  body  of  late  years  that  it  is  not 
deemed  necessary  to  quote  iigures  or  statistics  to  demonstrate  its  im- 
portance. Forming,  as  they  do,  the  boundary  line,  iit  part,  of  eight  of 
the  larger  States,  the  Great  Lakes  furnisli  a  highway  for  the  inter- 
change of  the  productions  of  those  Commonwealths  that  has  no  parallel 
in  any  other  country.  Thus  far  the  tratlic  njxm  them  has  been  ccmftned 
almost  wholly  to  the  trade  ^vith  Canada  and  the  Internal  commerce  be- 
tween the  States.  The  recent  (leveh)i)m.ent  of  the  untold  resources  of 
the  great  Northwest  has,  however,  made  the  productions  of  that  region 
not  only  a  vital  part  of  our  internal  commerce,  but  the  leading  factor  of 
our  foreign  trade.  To  facilitate  the  internal  ccnnmevce,  by  affording 
better  facilities  in  tV.e  way  of  improved  liarbors,  lights,  and  deepening 
the  canals,  Congress  has  not  hesitated  to  vote  appro])riations  by  mil- 
lio'is.     Its  action  in  this  behalf  has  met  tlie  ai)i)roval  of  the  country. 

Your  (H)nunittee  believes  that  it  is  now  equally  important  to  facili- 
tate and  take  the  propt'r  stei)s  to  secure  a  deep-water  outlet  for  the 
foreign  commerce  originating  in  the  Stat(?s  bordering  on  and  tributary 
to  these  waters. 

I'ublic  interest  'u  this  subject  is  evidetu'ed  by  the  a<*tion  of  conven- 
tions ami  connnercial  bodies,  as  well  as  by  the  several  ])ropositions  sub- 
mitted to  Congress,  looking  to  the  opening  of  aihMpiate  water  ways  be- 
tween the  lakes  and  the  ocean.  The  impracticability  of  <leei>ening  or 
improving  tbe  Erie  Canal  so  as  to  admit  the  passage  of  oceangoing 
crafts  seems  to  be  admitted  on  all  sides.  Ibit  it  is  claimed,  however, 
by  i)ersons  who  are  competent  to  ex])r(^ss  oj)inions  on  the  subject,  that 
it  is  feasible  to  construct  a  canal  from  Oswego  to  th<^  Hudson  of  suffi- 
cient si/.e  and  dcDth  to  furnish  deep-water  passage  from  the  lakes  to 
the  sea.  That  this  may  be  true,  and  that  the  work  nniy  be  undertaken, 
if  practi<*able,  is  earnestly  hoped  for  by  all  who  are  interested  in  the 
development  of  our  means  of  conmunication.    It  stands  admitted,  how- 


2       WATER  WAY    FROM   HEAD   OF    LAKE    SUPERIOR   TO    THE    SEA. 

ever,  that  this  project,  in  connection  with  the  proposed  Niagara  Canal^ 
would  require  decades  for  ita  execution  and  an  amount  of  money  vari- 
ously estimated  from  $40,000,000  to  1100,000,000. 

Pending  the  consideration  of  tliis  plan,  and  its  execution  if  adopted, 
it  seems  to  your  committee  that  the  great  interests  under  consideration 
should  be  served  by  other  available  means  if  such  are  at  hand  or  within 
our  reach.  Nature  has  provided  an  outlet  by  means  of  the  St.  Law- 
rence River  whicli  needs  bat  comparatively  little  improvement  to  make 
the  Great  Lakes  as  available  to  the  commerce  of  the  world  as  they  now 
are  to  the  internal  commerce  of  the  United  States  and  of  Canada.  On 
the  practicability  of  the  St.  Lawrence  route  for  that  purpose  we  quote 
from  a  letter  to  this  committee,  written  by  Col.  O.  E.  Poe,  in  charge  of 
the  construction  of  the  new  canal  at  Sault  Ste.  Marie,  in  response  to  a 
reference  of  this  resolution  to  the  War  Department,  as  follows: 

Tho  Welliiiid  ami  8t.  Lawri'uce  caiiaJs  iiudoiibtedly  occupy  the  most  favorablet 
and  therefore  the  best  line  oi  a\  iiter  ((numiuiii  ation  between  the  lakes  and  the  ocean* 
A  dee])  water  way  can  be  i.pentMl  l)y  their  route  at  h?HS  cost  than  by  any  other,  and 
there  can  be  no  ([ucstion  as  to  its  advantaj^es  in  an  entjineeriiij^  jioiut  of  view. 

It  must  be  assumed  that  the  Dominion  of  Canada  is  fully  aware  of  the  j^reat  advan- 
tage which  so  favo-able  a  route  ati'ords,  and  will  be  loath  to  enter  into  any  arrange- 
ment bj'  which  this  advantajfe  would  be  divided  with  another  power.  However", 
such  questions  belon<f  to  the  domain  of  diplomacy,  and  it  is  probable  that  I  am  not 
expected  to  discuss  them.  So  far  as  communication  between  the  lakes  and  the  conn- 
tries  beyond  the  Atlantic  is  concerned,  every  argument  favors  tha  proposition  of  this 
bill. 

Our  neighbors  on  the  north  have  already  improved  this  natural  outlet 
by  the  construction  of  the  Welland  Canal  between  lakes  Erie  and  On- 
tario, and  the  series  of  shorter  canals  along  the  St.  Lawrence.  These 
canals  cover  the  entire  distance  where  canals  are  required  between 
Lake  Erie  and  the  sea.  Their  aggregate  length  is  only  70  miles,  while 
the  Erie  Canal  is  'M>3  miles  long. 

In  pursuance  of  plans  adopted  by  the  Canadian  Government  for  uni- 
formity of  depth  the  Welland  has  been  deepened  to  14  feet,  and  the 
work  is  in  progress  on  the  other  canals  with  the  prospect  of  completion 
within  three  years  if  the  necessary  appropriations  are  made.  The  mag- 
nitude and  importance  of  the  work  already  done  is  made  evident  by 
the  fact  that  the  steamer  Witmore,  carrying  some  80,000  bushels  of 
wheat,  went  through  from  Duluth  to  Liverpool  last  season  by  lighter 
ing  her  cargo  in  passing  down  that  portion  of  the  St.  Lawrence  Kiver 
at  which  the  canals  have  not  yet  been  deepened.  This  trip,  though 
largely  experimental,  proved  remunerative  tot  he  owners  of  the  vessel. 
The  rate  paid  from  Duluth  to  Liverpool  was  9^  cents  per  bushel,  exclu- 
sive of  the  charges  for  transshipment  to  lighter  the  vessel,  which  was  3 
cents  per  bushel. 

This  demonstrates  that,  with  the  completion  of  the  improvements  now 
in  progress,  ster.mers  of  the  size  and  cai)acity  of  the  Wetmore  can  be 
dispatched  from  points  on  the  Great  Lakes  to  any  port  in  the  world, 
provided  we  c,;n  use  the  canals  in  conuuon  with  the  Canadians.  If  the 
canals  wore  further  deeiiened  so  as  to  correspond  with  the  new  "Soo" 
Canal,  Duluth,  Milwaukee,  Chicago,  Cleveland,  and  Buflalo  would  enjoy 
all  the  advantages  of  seaboard  cities  with  reference  to  foreign  trade. 

While  we  are  n()w  enjoying  the  use  of  these  Canadian  canals,  as  the 
Canadians  are  ours,  wesh<mld  not  h)se  sight  of  the  fact  that  such  enjoy- 
ment is  not  based  on  permanent  treaty  rights. 

Under  the  provisions  of  Article  XXXIII  of  the  treaty  of  Washington 
our  right  to  use  the  Welland  and  St.  Lawrence  canals  may  be  terminated 
on  two  years'  notice,  and  it  will  be  remembered  that  President  Cleve- 


EA. 


WATER  \\AY  FROM  HEAD  OP  LAKE    SUPERIOR   TO   THE   SEA. 


il' 


Caiialy 
f  vari- 

opted, 

ration 

within 

,  Law- 
make 

ey  now 
\  On 
quote 

arge  of 

se  to  a 

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le  oceau* 

her,  and 

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t  advan- 

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lie  coun- 

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il  outlet 
[lud  On- 
These 
between 
)s,  while 

for  uni- 
and  the 
npletion 
'he  mag- 
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,  though 
e  vessel. 
3I,  exclu- 
ch  was  3 

ents  now 
e  t!an  be 
lie  world, 
}.  If  the 
w  ''Soo" 
uld  enjoy 
trade. 
Is,  as  the 
ch  enjoy- 


land's  administration  claimed  that  the  article  in  question  has  already 
been  abrogated,  so  that  we  are  now  using  those  canals  by  sufferance 
only.  For  these  reasons  it  is  deemed  important  by  this  committee  that 
appropriate  action  should  be  taken  by  this  Government  to  secure  bj-  a 
fair  arrangement  with  the  Canadians  the  permanent  right  to  use  these 
canals  for  our  commerce,  in  common  with  and  on  the  same  terms  as  the 
citizens  of  that  country. 

It  also  appears  to  your  committee  that  the  present  time  is  exceed- 
ingly opportune  for  urging  such  action  in  behalf  of  the  commerce  of  the 
Great  Lakes.  It  is  reported  that  representatives  of  the  Canadian  Gov- 
ernment will  shortly  arrive  in  this  city  to  negotiate  with  our  Govern- 
ment for  closer  trade  relations  between  the  two  countries. 

Your  coi  imittee  therefore  recommend  the  passage  of  the  joint  reso- 
lution. 


ishington 
srminated 
nt  Cleve- 


^0,.. 


52d  'Don 
Isi  'Set 


PREI 


To  Senai 


July  1,  I 


To  the  S 

For  tl 
resolutio 
coimiiuii 
sentativ< 
Wliartoi 
canal  tol 
Adee,  S( 
tiou  of  J 
W.  F;  St 
t:  sented  t 
missione 

The  p< 
cominuii 
whicli  C( 
Britaiu, 
til  at  ii  s 
|.  exists,  a 
cident  b 

It  has 
to  the  s 
States  vv 
Las  alrei 


EXEOI 


1 


52d  'Dongres'S,  I 
1st  Session.     ) 


SENATE. 


<  Ex.  Doc.  lU. 
.  \       Part  2. 


I, 


m  THE  SENATE  OF  THE  UNITED  STATES, 


ME'SSAGE 

FROM   THE 


PRESIDENT  OF  THE  UNITED  STATES. 


IN   Kl'HTHKU    HKSPONSE 


To  Senate  resolution  of  February  24^  1892,  relative  to  trade  arrangements 
v.,  ,'5>  with  Canada.  - 


July  1,  1892. — Kcud,  referred  to  the  C'oiiiinittee  on  Foreign  Relations,  and  ordered 

to  be  printed. 


To  the  Senate: 

For  the  iiitbrination  of  tlie  Seii.ate,  and  in  further  response  to  tlie 
resolution  of  the  Senate  of  February  24t]i  last,  I  transmit  herewith  a 
conininnication  of  the  24th  instant  from  Mr.  Herbert,  the  acting  re]>re- 
sentative  of  the  British  Government  at  this  capital,  addressed  to  Mr, 
Wharton,  acting  Secretary  of  State,  upon  the  subject  of  the  (Canadian 
canal  tolls;  also  a  memorandum  prepared  and  submitted  to  me  by  Mr. 
Adee,  Second  Assistant  Secretary  of  State,  reviewing  the  communica- 
tion of  Mr.  Herbert,  and  a  letter  of  the  28th  instant  from  Mr.  .John 
W.  ¥,  ster,  who,  as  [  have  ])reviously  stated,  with  Mr.  Blaine  repre- 
sented this  (irovernment  iu  the  conferences  with  the  Canadian  com- 
missioners. 

The  position  taken  by  this  (xovernraent,  as  expressed  in  my  previous 
comnuinication  to  the  Senate,  that  the  canal  tolls  and  regulations  of 
which  complaint  has  been  made  are  in  violation  of  our  treaty  with  Great 
Britain,  is  not  shaken  but  rather  confirmed.  There  can  be  no  doubt 
that  a  serious  discrimination  against  our  citizens  and  our  commerce 
exists,  and  quite  as  little  doubt  that  this  discrimination  is  not  the  in- 
cident but  the  purpose  of  Canadian  regulations. 

It  has  not  seemed  to  me  that  this  was  a  case  in  which  we  could  yield 
to  the  suggestion  of  further  concessions  on  the  part  of  the  United 
States  with  a  view  to  set-uriug  treaty  rights  frn*  which  a  consideration 
has  already  been  given. 

BEN.J.   HAIiBISON. 

Executive  Mansion, 

July  1,  1892. 


RECII'HOCAL    TRADE    WITH    CAXADA. 


Mr.  FoHter  to  the  President. 


DKrAin-MKNT  OF  State, 
Wnsltimjton. 'lunc  L'a,  lSlf2. 

Tll«'    I'UKSIDENT: 

KcftMiiiij:'  to  tlie  r«>})()it  wliicli  I  snlmiitted  to  you  on  tin-  <>tli  hisfiaut 
of  tin'  coiifcrtMiccs  wliich  wric  licld  iit  tli«'  Depaitiiieiit  of  State  on  tlic 
.'3(1  ;iii(l  4th  instant,  at  whic!i  tlieit'  were  present  tlie  lion.  .M'U'Kenzie 
Bow  ell  and  the  IJon.  (leoige  E,  Foster  on  tlie  part  of  the  Canadian 
Govei'nnient.  and  the  then  Secretary  of  State  and  the  undersi<fned  on 
the  part  of  the  Cnited  States,  I  desire  lo  add  tlie  following  sta'enient: 

Durinji  the  eonferenee  on  the  4th  instant  the  Canadian  eoninnssion- 
ei'8  sng«;ested,  in  a  tentative  way,  but  without  any  formal  otfer  of  the 
same  as  a  definite  i»roposirion,  that  an  a<ljustnient  of  the  <iuestioii  as  to 
eanal  tolls  might  l)e  i<'aehed  by  the  ahtdition  of  all  rebates  on  tht  Wel- 
land  and  St.  Lawrenee  eauals,  (»n  e<mdition  that  an  assurance  he  ,?ivfcn 
tha^  tln'  continued  free  use  of  the  Sault  Ste.  Marie  Ca'>al  would  be  af- 
Huied  to  Uiitish  subjects  and  vessels,  and  that  article  30  of  the  tieatv 
of  1871  be  revived  in  full  etfect. 

The  suggestion  was  <lis(!ussed  at  sonu'  length  and  the  position  was 
maintained  on  the  part  of  the  leiuesentativesof  the  I'nited  States  that 
the  stii)ularions  of  article  27  were  in  nowise  moditied  by  the  terni.na- 
tion  of  article  .">0  after  ten  years  and  nj>:)n  two  years"  notice,  and  that 
the  obligations  of  (Jreat  IJritain,  under  article  27,  were  Just  as  hind  ng 
now  as  they  were  before  the  terndnation  (*f  article  30.  It  w'as  further 
stated  that  while  the  i)ro])osition  for  the  revival  of  article  30  \v;;o  one 
which  the  Ex«'cutive  would  regard  as  a  i)ro])er  subject  for  referen(;e  to 
Congress,  it  was  not  one  which  comnuMuled  itself  to  the  judgm<'nt  of 
the  conferees  on  the  ]>art  of  the  LTuited  Stat<  s  as  a  Just  and  satisfac- 
tory settlement  of  the  (luestion  of  the  canal  tolls  discrimination. 

Respectfully  suhndtted. 

.loiiJS    W.  I'OSTKH. 


.1 


Mr.  Herbert  to  Mr.  Wharton. 

British  Le(JAtion, 

Wanhiiu/fon.  r/ane  21,  J8f)2. 

Sir  :  I  have  the  honor  to  intorm  you  that  Sir  Julian  Pauucefote  duly 
forwarded  to  the  governor-general  of  ('aiiada  copies  of  your  notes  of 
th«>  10th  October,  1801,  and  of  the  17th  iMarch,  1802,  inclosing  me- 
morials from  the  i.ake  Carriers'  Association  of  Buffalo,  complaining 
of  alleged  disciinunati<ui  on  the  i)art  of  the  Canadian  (lovernmeut 
against  citizens  of  the  Cnited  States  in  the  use  of  the  Wellaud  Caual, 
an«l  1  have  now  received  a  eomnuinication  from  his  excellency  in  reply, 
containing  the  following  observatiofis  which  the  (loverment  of  the 
Dominion  desire  to  subnut  tlu^reon. 

The  (^anadian  (lovernmeut  have  «"arefully  examined  the  statements 
made  in  the  two  memorials  from  IN'r.  Keep,  the  secretary  of  the  Lake 
Carriers' Association,  and  they  have  been  found  to  be  in  many  respects 
inaccurate  as  to  tlgures,  as  well  as  in<'onclusive  in  the  deductiims  drawn 
from  them. 

His  assertion  that  during  the  season  of  l.s91  Canadian  canal  tolls 
were  levied,  discrinunating  against  the  Port  of  Ogdensburg  to  the 
aggregate  amount  of  $53,3115.07  would  appeal   to  be  widely  erroneous. 


UECIl'KUCAL    'r    ADE    WITH    CANADA. 


3 


teiiients 
he  Lake 

respei'ts  •• 

IS  drawn  i^ 

iiai  tolls  M 

r  to  the  I 

roneous.  4 


He  states  that  on  the  total  freight  shippei  by  Caiunliaii  canals  in 
18!n  to  ()f,nlensl)iir<>-  tin;  tolls  paid  were  .'i<r)5,(Ki7.(>h, 

By  tln'  otticial  (;aual  returns  it  appears  that  tlie  total  t'rci^dit  jiaasin};' 
thronj^h  tlie  Wellaud  Canal  in  1<S!>1  to  Ofideiisburg  was  really  272,5)47 
tons,  and  tolls  ])aid  were  A5.'i,444.;J7,  But  of  the  t(»tal  canal  freight  so 
ilischarged  at  Ogdensbury  the  classes  of  grain  spccihed  by  the  order 
in  council,  namely,  wheat,  Indian  corii,])eas,  barh;y,  rye,  oats,  flaxseed, 
and  buckwheat,  amounted  to  only  1J>1,(!(>7  tons,  and  the  tol's  paid  on 
the  same  to  ."^.■i.S,;i21.4();  and  these  are  the  only  articles  of  freight  which 
when  shipped  to  Montreal  »5onie  within  the  purview  of  the  order  in 
council  for  rebate  of  toll.  The  Jitterence  between  the  amount  of  tolls 
on  goods  subject  to  rebate  and  the  full  amount  of  tolls  is  therefoie 
$34,4.S9.LM5,  instead  of  $r);{,;V.)r..(;7  as  stat«Ml  by  .Mr.  Keej). 

Of  the  amount  of  grain  of  the  character  subject  to  rebate  passed  as 
above  through  the  Wellainl  Canal  to  Ogdensburg  17,S17  tous  were 
transshiped  at  that  i^ort  to  Montreal.  The  rel)ate  on  tliis  quantity,  if 
allowed,  would  have  been  •"?3,2(>7.  and  this  sum  constitutes  the  sole  dif- 
ference in  tolls  between  the  two  routes,  and  the  amounts  in  res[)ect  of 
which  any  discrimination  could  be  claimed  to  exisr.  The  remainder  of 
the  iyi,<i07  tons  passed  into  the  Kastern  States. 

On  freight  other  than  the  designated  products,  discharged  at  Ogdens- 
burg in  1(S!U  full  canal  t(dls  were  paid  and  would  have  been  levied  on 
Canadian  vessels  in  Canadian  waters,  with  no  refuiul  or  abatement  of 
any  kind,  Canadian  an<l  United  States  vessels  being  precisely  on  ;>  i)ar 
in  that  resi)e<t. 

The  Canadian  Oovernment  can  not  attach  any  weight  t(»  the  preten- 
sions of  Mr.  Ivee[)  that  there  is  ine(}uality  iii  the  use  of  the  canals  be- 
tween Canadians  ami  Americans  on  the  ground  that  the  tolls  for  the 
ivse  of  the  canals  going  westward  are  20  cents  per  ton,  while  those  for 
the  use  oi'  the  canals  going  «'astward  are  only  10  cents  per  ton.  Except 
as  regards  the  grain  products,  already  discussed,  he  does  not  assert  that 
there  is  any  difference  m  i-espect  of  the  amount  of  these  tolls  between 
Camidian  and  American  \essels  going  eastward  or  westward,  resi)ect- 
ively,  nor  that  the  destination  of  the  cargoes  eastward  or  westward  in 
any  way  affects  the  tolls  paid.  Canadian  and  American  vessels  pay 
the  same  toll  foi-  i)assing  through  the  canals  in  tne  same  ilirecticni,  and 
are  entindy  unrestncted  in  respect  of  such  tolls  1,'y  their  destination  or 
by  any  other  extraneous  circumstances. 

By  the  or<ler  in  council  of  April  4  last  it  was  j)rovided  that  a  refund 
of  18  cents  per  ton  shoidd  be  made  for  a  i>ortion  of  the  canal  tolls, 
widch  were  fixed  at  L'Oc«'nts  per  ton  upon  freight  of  all  kinds,  collect«'d 
on  the  designated  products  carried  through  the  \N'<'lland  Canal  and  the 
St.  Lawrence  canals  to  Montreal,  or  ;'..!.>  port  east  of  M<mtreal,  in  all 
cases  wlu're  these  products  weie  expoited.  and  in  such  cases  only.  The 
sann'  order  stipulated  that  products  on  which  the  rel»ate  could  be 
claimed  should  b»'  shown  to  have  been  originally  shipped  for  M<»ntreal 
or  some  p<ut  east  of  Montieal,  and  should  be  carrie«l  to  such  i)oint  and 
actually  sent  out  of  the  country,  with  the  proviso  that  the  right  to  this 
rebate  should  iu)t  be  lost  by  reason  of  inh'rmediate  transshipment,  if 
the  place  of  such  transshipment  be  within  the  Donunion  of  Canada. 
As  regards  all  other  fn'ights  passing  through  the  cunals  there  is  no 
rebate,  whatever  may  be  its  destination. 

The  »-tt'ect  of  tliis  orJer  in  council  is  to  tix  the  late  of  toll  on  all  of  the 
specified  jnoducts  passing  through  the  Wellaiul  ( 'anal  and  the  St.  Law- 
rence canals,  wiihout  distinction  as  to  nationality.  Vessels  of  both  coun- 
tries are  entitled  to  the  rebate  and  also  to  transship,  provided  that  such 


RECirKOCAL    TKADE    <N'ITH    CANADA. 


traiissliipnuMit  bo  iiiado  at  a  Canadian  ]Mnt.  It',  liowcver,  flic  trans- 
sliipuu'iit  takes  pliict'  at  an  Aim'ik'au  porr.  tlic  vessel  loses  its  riji'  t  to 
the  reltate.  And  the  h)ss  of  rebate  woiihl  apply  e(iuall.v  to  botli  Cana- 
dian and  American  vessels.  In  like  niiinner,  the  vessels  of  neither  <'onn- 
try  would  obtain  rebate  should  they  land  ;it  a  port  short  of  Montreal, 
either  on  the  Aniericiin  ('V  <";niadiaii  sid<'. 

Under  the  provisions  of  the  (»rder  in  council,  it  is  evident  that  the 
Canadian  (lovernnient  allow  tlu'  use  of  their  canals  both  to  their  own 
vessels  and  to  tlcise  of  the  Cnited  States  ujton  such  conditions  as  to 
intluenee  a  certain  class  of  the  tratlic  to  ])ass  down  the  St.  Lawrence  to 
Montreal;  but  in  the  inducement  thus  held  out  there  is  no  distinction 
made  as  respects  the  payment  for  the  use  of  their  canals  between  the 
vessels  of  the  Cnited  States  and  their  own.  In  favoriiiii'  their  national 
route  the  Canadian  Covernment  «lo  so  ou  precisely  the  same  conditions 
with  re<iar«l  to  both  nations,  and  they  contend  therefore  that  th«'yhave 
acted  in  accordance  with  the  oblij-ations  which  Clreat  Britain  has  re- 
qnested  them  to  take  under  article  N«».  1*7  of  the  treaty  of  Washington. 
The  stipulation  in  that  article  is  that  United  States  citizens  shall  use 
the  Canadian  camils  on  teims  of  e(|uality  with  the  ])eople  of  the  Do- 
minion, Ami  this  equality  is,  in  the  opinion  of  the  Canadian  Govern- 
ment, preserved  l>y  the  imjMtsition  of  the  same  c<mditions  and  thejirant- 
inji  of  the  same  i»rivileges,  with  the  same  restrictions,  to  vessels  of  both 
nationalities. 

By  the  thirtieth  article  of  the  treaty  of  Washington  it  was  agreed 
that  British  subjects  might  carry  in  British  vessels,  without  i)ayment 
of  duty,  goods,  wares,  oi-  merchandise  from  one  ]><u"t  or  jdace  within 
.  y  the  territory  of  the  Uinted  States  upon  the  St.  I^awrence,  the  (Jreat 

Lakes,  ami  the  rivers  connecting  the  same,  to  another  port  or  place 
within  the  aforesaid  territory  of  the  United  States,  iu<>vided  that.a 
j»ortion  of  such  transshipment  should  be  made  through  Canada  by  land 
carriage  and  in  bond.  And  a  pri\ilege  exactly  corresponding,  w?/^(</.s' 
muttimh's^  was  by  the  sairte  article  granted  to  the  citizens  of  the  United 
States  with  respect  to  goods,  wares,  or  merchandise  (tarried  from  one 
point  in  Canada  across  the  territory  of  the  United  States  to  another 
jioint  in  Canada.  By  the  same  article,  it  was  agreed  that  the  U'dted 
States  might  susi>end  the  riglit  of  cari-ying,  so  granted  to  British  sub- 
jects, in  case  the  Dominion  of  Canada  should  at  any  time  deprive  the 
citizens  of  the  United  States  of  the  use  of  the  canals  in  the  Dominion 
on  teiins  of  e(|uality  with  Canadians.  In  the  authorized  protocol  to 
the  conference  between  the  British  and  United  States  high  «;ommis- 
sioners  with  regard  to  the  thirtieth  article  of  the  treaty  of  Washington 
it  is  stated  as  follows:  -,     , 

Tliat  they  dosirod  and  it  was  agreed  that  the  traiissliipmciit  arraiigernent  should 
be  uiade  dependent  upon  the  nduexistence  of  (liscriniinating  tolls  or  regulati<)n8  of 
the  Canadian  canals  and  also  upon  the  abolition  of  the  New  Brunswiek  ex})ort  duty 
on  American  lumber  intended  for  the  United  States. 

The  Canadian  (lovernment  immediately  took  means  to  relieve  Amer- 
ican lunilxT  from  export  duty  in  New  Brunswick  at  a  cost  of  $150,000 
per  annum,  thus  completing  the  conditions  required  to  retain  article  30 
in  force. 

It  is  a(!Cordingly  evid(Mit  that  from  the  language  of  the  thirtieth  rti- 
cle  of  the  treaty  supplemented  by  the  protoc(d  of  the  conference  on  that 
article,  the  remedy  which  the  United  States  reserved  to  themselves  in 
the  event  of  Canada  depriving  the  citizens  of  the  United  States  of  the 
use  of  the  canals,  on  terms  of  equality  with  her  own  people,  was  pro- 
vided for  by  that  article  and  was  long  ago  resorted  to  by  the  United 
States. 


'f 


Rp:(ir'R()(AL    TRADi:    WITH    CANADA. 


.') 


traiis- 
liji'  t  to 
li  Caiiii- 
cr  comi- 
oiitrt'iil, 

lijit  the 

icir  own 
(lis  as  to 
rcnce  to 

tiiiotiou 
vecii  the 
iiiitional 
nditioihs 

oy  have 
has  re- 
liiiigtoii. 
ihali  use 
the  Do- 
Go  vein - 
le  jiTaiit- 
<  ot'botli 

1  agre<Ml 
>a.viiieut 
'  within 
e  (Jreat 
or  place 
1  that, a 
by  land 
,  mutatis 
'  Ignited 
ioni  one 
another 
'  U'lited 
ish  sul)- 
iiiv<'  the 
oniinion 
tcx'ol  to 
coniniis- 
iliington 

it  .should 
atioiis  of 
[)oit  duty 

I'  Anier- 
M50,(M)() 
I'ticle  30 


By  joint  rescdution  of  the  Senate  and  House  nt"  lli'presentatives, 
passed  on  tiie  ."Sd  ol  .Maicii,  l.SS.J.  it  was  (h-teiinined  to  ;;iv«' notice  to 
Canada  of  tlie  ^eiinination  (»!'  tlie  tiiirtieth  article  of  the  treaty  of 
Washington  at  the  end  of  two  years. 

On  the  lM  and  L'tth  of  duly,  IScS,"*,  under  orders  issued  by  Secretary 
Manniufi'.  based  ui)on  the  notice  yiven.  the  juivile^e  of  carrying;  trafiic 
dutyfree  from  one  point  in  tlie  •  iiited  Stat'-s  to  aiatther  pciiiit  in  the 
same  territory,  across  an  inte'veninj;  portion  of  Canadian  territory,  was 
linally  witlidrawn  fnnu  Cainidian  vessels,  tiuis  exactinj;'  from  Cana(hi 
the  penalty  for  disciimination  in  the  use  of  the  canals,  altlionj;!)  no  iii- 
etpuUity  really  existed.  This  i)rivile<ie  has  not  been  enjoyed  by  Caiuula 
since  the  lid  of  July,  ISS."*.  though  hitherto  the  Canadian  (rovernnH"it 
have  abstained  frctni  taUin«;'  any  steps  toward  previ'Utin^i'  the  coMtimuince 
to  the  riiited  States  of  the  corresponding  luivilej^'e  provided  for  t)y  the 
thirtietli  article  (d'the  treaty. 

While,  theietbre.  the  Caiuuliaii  CioveinuH'ut  are  unable  t(»  adiiut  that 
any  discrindnatiou  in  the  use  of  the  <Janadiaii  canals  is  nuule  against 
Cidted  States  vessels  l)y  the  terius  of  the  order  in  council,  they  main- 
tain that  even  if  the  fact  rhat  transshipment  is  contined  to  a  Canadian 
poit  <'ould  be  constiMU'd  as  constituting  siu'h  discrinnnation,  tl.e  peiuilty 
agreed  upou  itetween  the  Cnited  States  and  (.reat  Ibitain,  in  such  an 
event,  has  alrt'ady  l>een  exacted  by  the  lTnit<'d  States. 

The  (Jovernment  of  the  Dcuniinon  ar^'.  nevertheh  .s.  as  heretofor<', 
desir<Mis  of  maintaiidng  fricMuUy  relations  with  the  Cnited  States,  ami 
are  willing  to  meet  their  views  so  far  as  is  consistent  with  their  posi- 
tion and  with  the  interests  of  their  i>eople.  They  believe  that  tlu'  con- 
diti(Uis  of  the  treaty  of  Washington  in  respect  of  international  trade 
were  endmuitly  calculated  to  preserve  such  andcable  relations  between 
the  countries,  and  in  tluMr  opinion  the  most  satisfactory  way  of  meet- 
ing the  ]uesent  dillticulty  would  be  to  revert  iu  some  degrei;  to  the 
terms  of  that  treaty,  in  so  far  as  they  relate  to  the  question  under  dis- 
<'Ussion.  With  a  view  to  the  furtlierance  of  a  good  understanding  on 
these  paints,  they  wf)uld  be  disposed  to  enter  into  an  arrangement  such 
as  the  following: 

Tliiit.  IS  rcgiirds  tbi'  nuviyjiitioii  of  tlie  Wellaml  iiiel  St.  Liiwrcucc  ciiiiaLs.  tin-  im- 
position of  tolls,  iiuil  tlie  jj;rimtiiijf  of  relcitrs  thereon,  the  same  treiitmeiit  will  be 
accoidi'd  to  citizens  of  the  Unife<l  States  as  is  j^iveii  ro  the  subjects  o/ller  liritannic 
Majesty  without  regard  to  )>orts  of  transsbiiMiieiit  or  export,  and  that  the  I'uited 
States  will  eontinne  to  deal  in  lilce  manner  witli  the  subjects  of  Il<n'  Hritaimie  Ma- 
jesty in  the  use  of  the  existing;'  Sault  Ste.  Mario  Canal.  That  the  provisions  of  ar- 
ticle 30  id'  the  treaty  of  U'ashiunton,  ;irantiny  liarryinj;'  jiowers  to  vessels  belonyiug 
to  the  subjeetb  of  Her  Ihitannie  Majesty,  as  (leseribed  in  that  article,  be  restored. 

In  conclusion,  I  venture  to  express  the  hope  that  this  proposal,  which 
I  am  instructed  by  the  .Marquis  of  Salisbury  to  submit  to  your  Govern- 
ment, will  be  received  by  them  in  the  same  friendly  spirit  in  whicl-i  it  is 
made,  and  that  it  will  be  found  to  provide  an  amicable  and  satisfactory 
solution  of  the  question  at  issue  between  the  two  countries. 
I  have  the  honor  to  be.  with  the  highest  consideration,  sir, 
Your  most  obedient,  humble  servant, 

Michael  H.  Herbert. 


n 


RECIPROCAL  TKADH  WITH  CANADA. 


Memorandum  hy  Mr.  Adee. 

Depakoieni  of  State, 

Washington,  >Jtnie  28,  1892. 

»  The  reply  (tf  tlie  Caiiadiiin  Govonnneiit,  as  conimuiiuated  by  dircc 
tioii  of  Lord  Ssuisbury  in  3Ir.  Herbert's  note  of  June  24,  oidy  deals  Avith 
^Le  stateineiits  in  regard  t<Kliseiiiniiiatiiig  tolls  iu  tlu' Well  and  and  St. 
Lawrence  liiver  canals  presented  in  ilu^  memorials  of  the  Lake  Carriers' 
Association,  which  acconii)anicd  the  Dei)artment's  notes  to  Sir  Julian 
Pauncefote  of  Octobei  10,  18111,  and  March  17,  1892. 

The  report,  prepared  by  Mr.  Partrid^^e,  and  which  acc(*!npanied  the 
President's  nicssuge  of  June  18,  deals  more  mcth(»di<'ally  with  the  (jues- 
tion  of  the  nature  and  etfeet  of  th(  discriminations.  In  that  repcu't  the 
discvimination  on  <4rain  earj'oes  moving  eastward  was  shown  to  be  three- 
tVid:  First,  that  the  toll  on  f>rain  for  export  from  Montreal  or  Canadian 
ports  cast  of  ]\[(  iitreal  is  by  rebate  reduced  to  2  cen.ts  i)er  ton,  Avhile 
the  toll  on  yrain  for  export  from  American  ports  is  20  cents  per  ton. 
,     As  to  this  the  Canadian  rt-ply  says: 

ruder  thf!  provisions  of  tlio  order  in  eouiicil.  it  is  evident  that  tli(>  CanadiiUi 
Gov<'rniiient  allow  the  us;-  of  tlu'ir  canals  liuth  to  their  own  vessels  and  to  those  of 
the  I'liited  States  upon  sneh  ciinditions  as  to  intinenee  a  certain  class  of  the  iratf-e 
to  pass  dowii  the  St.  Lawrence  to  Montreal;  Init  in  the  indnceiiieut  thus  held  out 
there  is  no  distinction  made  as  respects  the  ]iayinent  for  the  nse  of  their  c.nals  l>e- 
tvreen  the  vessels  of  tlie  Lnited  .States  and  their  own.  In  favo.in^  their  national 
ronte  tiie  Canadian  <iovernnu'n<^  do  so  on  ]>recisely  the  sr  ne  'onditions  Avith  regard 
to  both  ii.itions,  and  they  contend,  therefore,  thai  theyliave  acted  in  accordance  with 
the  oldi,t;a*'ions  w  hi-li  (ireat  Britain  has  reqi.  ^"d  them  to  take  nnder  arti<de  No.  27 
of  the  tre;ti,y  of  Washington. 

The  order  in  council  does  more,  however,  than  favor  a  national  route 
of  fransportotion — it  aims  to  favov  the  tiade  of  c.vf.orttdion  from  tho 
Canadian  ports  of  departure  for  tbreijEfn  traffic.  The  rebates  of  canal 
tolls  are  merely  au  instru.uent  to  favor  theex])oit  trade  from  Canadian 
l>orts.  If  the  object  were  to  favor  the  use  of  tin'  Canadian  canals,  and 
that  object  were  carrie<l  out  impartially,  citizens  of  the  Cnited  States 
would  linvc  little  or  wo  cause  to  eom|)lain.  ^Moreover,  the  defense  of 
the  Canadian  Covernment  is  contincd  to  alleoing  that  no  discrimina- 
tion in  fact  is  made  between  Can  idian  and  Cnited  States  n'uscli;  car- 
rying; the  favored  cargoes  throujih  the  c.tnals;  when  the  treaty  of 
V/ashington  makes  the  treatment  oi'  (■i1i:::rns  the  sole  test  of  equality  in 
the  use  of  the  canals.  That  the  order  does  favor  and  is  intended  to 
favor  the  citizens  of  Canada  at  the  exitense  of  the  citizens  of  the  Cnitetl 
States  is  clear,  lookinji-  at  the  order  as  a  whole.  Were  the  purpose  of 
fosteiing  the  Canadian  export  trade  accomplished  by  a  bounty  to  tiie 
vessels  carrying  grain  cargoes  from  the  St.  Lawrence  ocean  pints,  the 
case  might  be  ditferent:  but  the  ])urpose  is  effected  by  levying  differ- 
ential tolls  in  antl  tor  the  use  (»f  tlie  Welland  and  St.  Lawrence  I\iver 
canals,  so  that  the  enctniragement  of  the  export  trade  is  converted  into 
snch  a  discvimiiiatior.  aga-nst  the  enjoynu'nt  of  the  canals  by  citizens- 
of  the  Ci>ited  States  as  the  ticaty  of  Washington  expressly  aimed  to 
guard  against. 

(2)  Another  iunl  more  evident  discrinnnation  against  the  American 
citizen  lies  in  refusing  the  lesser  rate  of  2  cents  per  ton  on  grain  for 
exf)ort  from  Montrcijl  or  itorts  east  of  Montreal  if  it  has  been  trans- 
shi5>ped  at  an  AnuMi<'an  i>ort,  Mhde  it  is  a'lowed  if  transshiinnent  be 
effected  at  a  ('aaailian  uoit. 

As  to  this  the  Canadian  reply  merely  says,  "  the  losh  of  itbate  would 
ai>ply  e«puilly  to  both  Canadian  and  American  ve;:8el8,'"thus  narrowing 


RECil'KUCAl,    TKADE    WITH    CANADA. 


the  contention  to  the  equal  treatment  of  vessels  and  ij;noi'ing  the  en- 
gagements of  the  tiej.ty  as  to  the  equal  treatment  of  eiiizens.  The 
reply  ftuls  ro  meet  the  complaint.  Moreover,  it  is  at  v'ari,.nce  with  the 
allegation  elsewhere  pur  forth  that  the  purpose  of  the  order  is  to  en- 
courage the  passage  of  grain  cargoes  through  the  canals,  for,  i^  fact,  it 
directly  dis^-iairages  a  large  tratlic  which  would  pass  through  the 
Welland  Canal  if  the  sui)erior  facilities  for  transsliij>ment  atto»(led  by 
("he  elevators  at  Ogdenshiirg  and  Oswego  were  an  inducement  to  send 
grain  cargoes  i)y  the  Welland  route.  Tue  oi'der  i::  in  this  regard  a 
naked  discrimination  against  the^Smerican  citizen,  for  the  enforcement 
of  which  the  canal  tolls  are  employed  as  a  convenient  instrument. 

(3)  As  to  the  traffic  passing  thro.igh  the  !St.  Lawrence  Kiver  ca-nals, 
a  third  discrimination  exists  which  is  in  absolute  and  open  violation  of 
the  intent  of  the  t"<^aty,  for  if  the  starting  ])oint  of  the  grr.in  cargo  for 
exjtort  be  a  Canau  n  Lake  Ontario  port,  tlie  toll  is  but  2  cents  ])cr  ton, 
while  the  2()-cent  rate  is  exacted  on  grain  for  the  same  destination  from 
the  American  Lake  Oiitai;  •  ports.  This  is  a  new  discriieination,  ap- 
pearing for  tne  tirst  tiiiic  in  the  Canadian  order  of  April  4,  1S1'1\  and 
imposes  !i  diflerential  treatnuMit  against  American  i>orts  and  American 
citizens  intt  existing,  or  even  contenrplated  as  ii  proi);ii»ility.  when  the 
Lake  Carri«'rs'  Association  presented  its  memorial  of  September  IS, 
1S!)1,  to  which  the  i)resent  note  of  the  British  charge  jMirports  torei)ly. 
The  Cani;;lian  argument  is,  therefore,  silent  as  to  this,  ])erhaps  tlie 
most  inteiitioiudly  vexatious  discrimination  against  thestijmlated  [tvi\- 
ileg«^  of  citizens  of  the  United  States  to  use  tiie  Canadian  canals  "on 
terms  of  equality  with  the  inhabitants  of  the  Dominion." 

(4)  A  fo'irth  discrimination  as  re I'.irds  the  system  of  tolls  adopted 
in  the  Welland  Canal  was  applied  by  a  I)<nnini(»n  order  of  April  11, 
1S!>0,  regulating  the  tolls  on  coal.  I»y  that  order  the  toll  on  coal  pas- 
sing down  the  canal,  eastward  bound,  was  reduced  fiom  LM)  cents  to  10 
cents  per  ton,  but  tlie  full  toll  ofL'O  cents  ju'r  ton  was  left  o'UMial  bound 
up  the  canal,  westwai-d.  The  memorial  fully  exhibits  the  discrimina- 
tory effect  of  this  difterence  between  eastward  and  westward  rates, 
showing  that  the  down  rate  of  10  cents  applied  in  1S!I0  to  lili,7Sl  tons 
of  coal  carried  m  Canadian  vessels  to  Canadian  ports  and  to  only  <►!.■» 
tons  carried  in  an  Anu^rican  vessel  to  an  American  port.  Of  the  coal 
carried  uj)  the  can.d  and  conqtelled  to  pay  a  ioll  of  L'(>  (cnts,  I1(»,<1H5 
tons  were  carried  between  poirs  of  the  Cnited  States.  IT.L'Sd  tVwm  a 
United  States  to  a  Canadian  port,  and  S()  Ions  only  between  Canadian 
ports.  This  adroit  maniimlation  of  the  tolls  (q)erates  to  tat  the  «*om- 
merce  of  A?neric;in  citizens  much  more  heavily  than  thatof  Canadians, 
and  goes  far  to  exi»laiii  the  statement — 

Tliiit  <if  thf  toti'l  r:i !•;;•<)  tiMiniiijc  iit'  tlu!  Wi'lluu.I  Cinial  during-  the  yi'iir  IH'IO.  r>7  per 
('»'iit  dcstiiu'd  tor  Aiix'iir.an  ports  jiHiil  moif  than  7-  per  leii!  ot'tlic  tolls,  jhhI  I'.i  j)er 
ci'iit  ilestine'l  for  C'an.itliaii  ports  paid  loss  tUau  ',iH  per  cent  of  the  tolls. 

This  statement,  supported  as  it  is  by  Canailian  oflicial  statistics,  is 
(dismissed  by  the  <"anadian  rei>lyas  follows: 

riie  Canadian  (iovcrnnn'iit  can  not  attach  any  wi'ijcht  to  tlic  pretcnwions  of  Mr. 
Ketp  that  there  is  ineiiiiality  in  the  use  of  thecanaN  hctween  Can.idians  and  Aineii- 
cans  on  the  jiround  that  the  tolls  for  the  nne  of  ti.e  canal  jioi'ifj  westward  art  20 
o^iits  per  ton,  wliile  those  for  th(  nse  of  the  canal  uoinj,;  eastward  are  only  10  cents 
]  \  r  ton.  Hxcej»t  as  re^ardii  tnt^  j,;rain  pi. (ducts  already  discnsMed,  ho  iloes  not  assert 
that  there  is  any  liifferencc  in  lespect  of  tlie  amount  of  tliese  t(dls  between  Canadian 
and  American  \  esM«<ls  uoin^  eastward  or  westward,  respectively,  nor  that  the  d  "sti- 
nation  of  1\u-  cariiors  eastward  or  woitward  in  any  way  affects  the  tolls  paid.  Cana- 
dian and  American  vcss«>]s  pay  the  same  toll  for  jiassiny:  through  the  canal  in  the 
same  direction,  and  !ire  entirely  tiiirestricted  in  respect  of  siu  li  tolls  by  their  desti- 
nation or  by  any  other  ei.traneous  <  ircninstanceB. 


8 


BECIPROCAL    TRADE    WITH    CANADA. 


Here  a<>nin,  as  throughout  the  note,  the  hinguage  of  the  treaty  as  to 
the  equal  treatment  of  the  eitizens  of  the  two  countries,  in  their  enjoy- 
ment of  the  facility  of  coastwise  transit,  is  lost  sight  of  and  a  defensive 
argument  is  based  on  tlie  eircuinstiuice  that  no  ditfeieutial  toll  is  im- 
posed on  the  vessels  of  eithei'  party. 

Of  the  four  classes  of  discrimination  existing,  under  the  difterential 
system  of  tolls  and  the  differential  regulations  as  to  points  of  origin 
and  transshipment,  the  Caniulian  reply  deals  with  three,  and  with 
those  only  by  denying  that  any  diflerential  riles  are  applied  to  the  dis- 
favor of  American  vessels. 

The  (Janadian  reply  disjtutes  the  iiccurncy  of  the  figures  given  in  the 
nu'inorial  of  the  Lake  Carriers"  Association  respecting  the  levy  of  tolls 
to  the  aggregate  amount  of  .*53,3!>r).07  in  disciimination  against  the 
freight  ship])ed  by  Canadian  canals  in  1<S!M  to  Ogdcnsburg.  By  con- 
lining  the  examination  to  the  grain  stuflV  actually  transshi])ped  at 
Ogdcnsburg  to  .  lontreal  after  having  come  through  the  Wclland  Canal, 
Avliich  in  1S!M  aniounted  to  ir,817  tons,  the  Canadian  replv  concludes 
that— 

TlnA  rebate  tm  tlii»  (iiiiuility,  if  allowed,  would  have  lieen  !}!3,207,  and  this  sum  eou- 
stitiites  the  soil-  diti'cienee  ill  tolls  between  the  Iwo  routes,  and  tlie  only  amount  iu 
resjH'ct  ol' whiih  any  discrimination  could  be  claimed  to  exist. 

Tlitn'c  is  no  suggestion  that  the  reduction  of  the  Montreal -bound 
transshipments  at  Ogdcnsburg  to  the  j)altiy  figure  of  17,S17  tons  may 
not  liave  been  the  direct  result  of  the  discrimination  complained  of; 
and  had  the  result  of  the  order  l>een  altogether  proiiibitory  and  no 
transshipments  of  grain  for  Montreal  been  ertected  at  Ogdcnsburg,  it 
may  be  infened  tiiat  tlie  Canadian  (iovcrnment  would  have  found 
therein  evidence  tliat  no  "  difference  "  whatever  exists  "in  tolls  between 
the  two  ro'ites." 

<»>uitting  the  defensive  argument  in  sui)i)ort  of  the  contenticn  that  no 
discriminating  treatment  results  from  the  system  of  tolls  adopted  in 
the  Canadian  canals,  the  re])ly  of  the  Dominion  goes  on  to  propose  a 
compriunise  agreement,  as  follows: 

That,  as  lejfards  the  iiavi.natiou  of  thi'  Wclland  and  i^t .  Lawrence  canals,  the  ini- 
]>ositi<ni  of  tolls  and  the  ;;r;uiTinj>'  of  rebates  (hereon,  the  siiine  treatment  will  be  ac- 
«'orded  to  citi/eiis  of  the  I'nited  States  as  is  <jiven  to  the  subjects  of  ller  Uritannic 
Majesty  withoul  rejj;aiil  to  ]iorts  of  transshipment  oi-  exitort,  and  that  tlie  I'uited 
States  will  cdiitinne  to  deal  in  like  manner  with  the  subjeits  of  ller  Mritanni<^ 
Majesty  ill  the  use  t)f  the  existinj^  8ault  Stc.  Marie  Canal.  That  the  pros'isions  of 
article  30  of  the  tit'aty  of  \\ashinj;toii,  <;rantin.u;  cairyiuj;;  powers  to  vessels  iiidoii;^- 
iufi  to  subjects  of  ller  Ibitannic  MajeKty,  ;is  de!,criitcd  in  that  arti<le,  be  restored. 

Tlu'  thirtieth  article  of  the  treaty  of  Wasliington  reads  as  tblhnvs: 

AlfTICI.K  XX.X. 


".fi 


It  is  agreed  that,  for  the  terms  of  ycaii  mentioned  iu  aitich'  w.xin  of  this  treaty, 
Huhjectsof  ller  nritannic  Majesty  nia.v  carr>  iu  liritish  vessels  wilhont  payment  oi' 
<lufy  ijooils,  wares,  or  merchantlise  Irom  one  jtori  or  )dace  wiihin  the  t'-nitory  of  the 
I'nited  States  u|)(Mi  t  lie  St,  Lawr«>nc<'.  the  (iieat  l.aki-s,  and  the  rivets  eoiiiiectinji 
the  same  to  auoihcr  port  or  jdai'e  within  th»'  territory  of  the  liiited  States  as  .ifore- 
Naid  ;  I'roridxl.  i'hat  a  portion  o|' such  tr.inH)nirtation  i>  made  throuiih  the  Dominion 
ofCanad.i  liy  land  carria;;'e  and  in  lumd,  under  such  rules  and  renulatious  as  may 
be  ay;reed  upon  between  the  <jovernnumt  of  Her  Hritannie  Majesty  and  the  (ioveril- 
nient  of  the  I'nited  .States. 

Citi/eiis  of  the  I'liited  States  may  forthelike  period  carry  iu  I'nited  States  vesseln 
without  ]>ayment  of  duty  );oods,  wares,  or  nu>rehandise  from  one  pint  or  ]>laee 
within  the  jtossessions  of  ller  Uritanuic  Majcty  in  North  j^;iierica  to  another  port  or 
place  within  the  said  possessions:  I'roviihii.  Tliai  ;i  portion  of  such  transportation 
Is  made  throu^Ii  the  territory  .d'the  liiitcd  States  by  lai  d  carriage  and  in  liond,  un- 
der such  rules  and  rennlatious  aw  m.i.\  be  agreed  upon  betwcn  the  (Jovornnieut  of 
the  United  Stites  and  the  (iovernmeut  of  ller  Britiuiuie  .Majesty. 


RECii^ROCAL    TRADE    WITH    CANADA. 


origin 


biii'g,  it 


Tlie  Goveriinenfc  (ifthe  Uiiitod 

duties  on  f^ootls,  wares,  or  incicli; 
tory  of  the  I'liitcd  States,  and  lie 
inontoftlie  Dominion  of  Canada 
l)ose  any  export  duties  on  fiooils. 
and  the  Goverumeut  of  the  Inite 
]H)8ed  by  tlic  Dominion  ot'Canad; 
imposed,  the  ri,i;ht  of  earrying  ^i 
IJer  Britannic  Majesty. 

The  (Jovevumeut  of  the  Unite<l 
in  favor  of  tl)e  snhjeets  of  Her  Hr 
minion  of  Caunda  should  :it  any  t 
use  of  the  canals  in  liu'  said  Doni 
tlio  J)ominion,  as  jirovided  in  arl  i 


States  further  engages  not  to  impose  any  export 
indise  carried  under  tliis  arti<'le  tlirongh  tlie  tt>rri- 
■r  Majesty's  (iovernment  engages  t«)  urge  tlie  parlia- 
and  the  legislatures  o*'  tlie  other  colonies  not  to  ini- 

Avai'cs,  or  merchanilise  carru'd  under  this  article; 
d  States  may.  in  case  such  ex]jort;  duties  are  im- 
I.  susiieml,  during  the  period  that  such  duties  ;ire 
anted  under  this  article  in  favor  of  the  subjects  of 

States  may  suspend  the  right  of  carrying  granted 
itannic  ^lajesty  undei'  this  article  m  case  the  Do- 
inie  de]iri\e  the  citizens  of  the  United  States  of  the 
inion  on  terms  of  ecjuality  with  the  inliabitaots  of 
icle  wvii. 


With  rtijiiu'd  to  the  hist  chviise  of  this  article,  giving  to  the  United 
States  the  ])o\ver  to  suspend  the  earrying  rights  of  Caniidiins  in  the 
United  States  in  the  event  of  Canada's  denying  equal  treatment  to 
^inerieau  citizens  in  tiie  use  of  the  Dominion  <'anal.s,  tlie  Canadian  re- 
ply ([uotes  from  the  anthoiized  jnotocol  of  the  high  commissioners — 

That  they  desired  and  it  was  agrei-d  that  the  transshipment  arrangement  should 
be  luade  dejicndent  niton  the  nonexistence  ol"  discriminating  tolls  or  regulations 
of  the  Canadian  canals,  and  also  upon  the  abolition  of  the  New  liruuswiek  export 
duty  on  .Vmcrican  lumber  intended  for  llie  I'nited  States  (For.  Rels.,  IS71,  p.  511) — 

and  i)roceeds  to  argue  tliat — 

It  is  accordingly  evident  that  frt)ui  tl.^  language  of  the  thirtieth  article  of  the 
treaty  sn]>plemcnted  by  the  })ridoi'ol  of  tlie  conference  ou  that  article,  the  remeily 
Aviiich  tlie  I'uitcd  States  reserved  to  themsch es  in  the  event  of  Canada  depriving 
the  citi/cns  of  the  I'uited  States  of  tin;  use  of  the  canals,  on  terms  ot' equality  with 
her  own  ])eople,  was  provided  for  ity  that  article  and  was  long  ago  resorted  to  by 
the  I'nited  States. 

throngli  the  teiinination  oi"  the  artich^  in  ([uestion  in  -Inly,  I.S80,  by  two 
years'  notice  given  by  the  Unitefl  States  in  l.S.s."] — 

rinis  exacting  from  Canada  the  iteiialiy  for  discrimination  in  the  use  of  the  canals, 
although  no  inequality  really  existed.  *     *■ 

While,  therefore,  the  Canailiau  <iovernin«uit  are  unable  to  admit  that  any  discrinu- 
natioii  in  the  use  of  the  Canadian  canals  is  made  againsr  Cnited  States  vessels  by 
the  ternis  of  the  order  in  ciuincil,  they  n'aintain  that.e\cn  if  the  I'aet  th.it  tr.ans- 
shipiMcnt  is  eonliued  to  a  Canadian  port  could  be  construtid  as  constituting  such  a 
discrimination,  the  penalty  agri'cd  u])on  between  the  United  States  and  Great 
laitain,  in  sin-h  an  event,  has  already  been  exacted  by  the  United  States. 

Artich' .■{()  was  one  of  several  rcmiiiating  tlie  tishing  ]>rivileges  and 
ccitiiin  jiliases  of  the  intercourse  of  tlie  I'nited  Stiitcs  and  Canada 
\vlii(  li  were  incorjiorated  into  the  tre;it.\  of  Wasliington  tind  to  whicii 
a  duration  was  assigned,  of  ti'ii  y«'ars  certain  and  tlicrciifter  until  two 
years"  notice  (»f  their  teiininatifm  sliould  be  given  ]>y  either  party,  tia 
l»ro\  idi'd  in  tlie  thirty-third  article  of  the  tn'iily,  as  foll(»ws: 


10 


RECIPROCAL  TRADE  WITH  CANADA. 


Tlie  laiifjjuage  of  the  ])rot(M'ol  of  the  conference,  (|Uoted  in  the  Cana- 
dian reply,  may  be  riglitly  taksn  as  representing-  th(i  judjtfment  of  the 
High  Commission  that  an  enj;a{ivment  binding  the  l'nit<Hl  States  to 
grant  a  privilege  to  Canada  for  a  term  of  years  Avas  not  equitably  cor- 
relative witli  tTie  reciprocal  nualiiicd  privilege  granted  by  Canada  in 
respect  of  the  Dominion  canals,  which  in  terms  was  dependent  upon 
the  pleasure  of  ('anada  and  liable  to  be  terminated  at  any  time  by  ad- 
verse legislation  or  regulation.  The  meaning  of  the  concluding  jiroviso 
of  article  ."JO  is  clearly  that,  in  the  event  of  tlie  privileges  of  etpuil  en- 
joyment of  the  Dominion  canals  by  citizens  of  the  United  States  being 
withdrawn  or  curtailed,  the  United  States  might  retaliate  by  forthwith 
suspending  the  recii)rocal  transit  ]>rivilege  under  article  30,  even 
though  the  period  ftxed  ftn'  the  duration  thereof  should  not  have  elapsed. 
Tlius,  had  discriminating  measures  been  adopted,  in  respect  to  the 
Canadian  canals,  at  any  time  during  the  ten  years'  life  of  the  article,  or 
(luring  the  two  years  succeeding  notice  given  of  its  termination,  the 
United  States  could  have  at  once  suspended  the  transit  privileges 
granted  to  Canadians  within  the  territory  of  the  United  States. 

This  right  of  suspension  was  a  mere  incident  of  the  peculiar  relations 
of  transit  and  intercourse  created  by  articles  :i7  and  30  of  the  treaty  of 
Washington,  and  is  wholly  differ<Mit,  both  in  intent  and  in  effect,  from 
the  right  of  termination  given  in  regard  to  those  and  sundry  other 
articles  by  the  thirty-third  article  of  the  treaty.  The  right  of  su8i)en- 
sion  could  be  exercised,  foi"  cause,  by  the  United  States  alone,  the  case 
arising.  The  right  of  abrogation  was  common  to  both  (Jovernments,  to 
be  exercised  by  either  at  its  ]»leasure  after  a  dcHned  term  slumld  have 
elapsed,  if  in  its  judgment  the  continuance  of  the  relations  created  by 
those  articles  should  be  found  inexi)edient.  Like  all  engagements  of 
intercourse  and  recii)rocity,  the  articles  in  question  were  tentative,  and 
their  continuance  after  a  certain  time  was  to  be  depeiulent  on  their  ccm- 
tinuing  to  work  in  a  manner  satisfactory  to  each  of  the  contracting  par- 
ties. The  United  States,  for  considerations  of  domestic  convenience, 
saw  fit  to  exercise  the  right  of  abrogation  at  the  earliest  i)ossible  date 
permitted  by  the  terms  of  the  treaty.  It  ih  irrelevant  to  associate  fhis 
exercise  of  an  o)dinary  right  of  termination,  common  to  all  treaties  of 
commercial  intercourse,  with  the  idea  of  a  penalty  for  a  shortcoming  as 
yet  nonexistent  on  the  ])art  of  the  other  contracting  party. 

The  Canadian  argument  fippears  to  regard  the  authorized  and  nor- 
mal tertnination  of  article  30  as  operating,  iiuletinitely  and  for  all  fu- 
ture time,  to  exhaust  the  power  of  itenalty  and  retaliation  for  any  fail- 
ure of  Canada  to  fultill  the  intended  engagement  of  e«iuality  in  the  use 
of  her  canals.  The  mere  statement  of  this  pro])osition  suffices  to  dem 
onstrate  its  untenableness. 

The  ])ro])osition  to  secure  for  Canadian  citizens  and  prodticts  S(mie 
additional  privilege  of  transit  within  the  United  States,  as  an  offset  or 
pret<'nded  e(|nivalent  for  the  enjoyment  by  Americans  of  the  facilities 
of  the  Dondnion  canals  on  an  identical  footing  of  equality  with  Cansi- 
dians,  is  not  new.  It  was  incidentially  suggested  in  the  conferences 
held  on  the  3d  and  4th  of  June.  1  SOL',  between  the  Secretary  of  State 
and  the  Canadian  comndssioners,  but  was  disnussed  without  serious 
consideration.  It  canu'  up  also  in  the  same  conference  in  the  form  of 
a  proposal  that  the  free  navigation  of  the  New  York  Stat<>  canals  and 
the  Huds(m  Kiver  should  be  granted  to  Canadians  in  return  for  the  re- 
moval of  the  discriminating  canal  tolls  of  the  Dominion,  and  was  again 
dismissed.     It  is  now  jtresented  anew  in  its  original  form. 

Kegarded  as  a  whoh',  the  Canadian  reply  fails  to  nuHt  (he  just  com- 


RECIPROCAL  TRADE  WITH  CANADA. 


11 


plaints  of  the  United  States.  It  narrows  the  issue  to  the  treatment  of 
American  and  Canadian  vessels  in  respect  to  tolls  in  the  Welland  and 
St.  Lawrence  canals,  and  to  the  denial  of  rebate  to  cargoes  of  grain 
stuffs  actually  transsliipped  in  an  American  port  for  export  from  ^lou- 
trcal,  or  a  port  east  of  that  city.  It  ignores  the  adroitly  devised  sys- 
tem by  which  the  traffic  of  citizens  of  the  United  States  is  made  to 
contribute  a  much  larger  percentage  of  tolls  in  the  Welland  Canal  than 
the  traffic  of  Canadians.  And  it  is  altogether  silent  touching  the  dis- 
crimination, introduced  into  this  season's  order  in  council,  withhold- 
ing the  export  rebate  from  cargoes  coming  from  any  port  on  the  United 
States  shore  of  Lake  Ontario. 
Eespectfully  submitted. 

Alvey  a.  Adee, 
Second, Assistant  Secretary. 


52d  GoNaBESs, 
Ist  Session. 


IS  INNATE. 


Ex.  Doc. 

^^).  114. 


m  THE  SENATE  OF  THE  timTED  STATES, 


f  « ■ 


>:l,--"  :•   •   MESSAGE-:;::?:::-;::.;';- 

— •         ■  FROM   THE 

PRESIDENT  OF  THE  UNITED  STATES. 

IN    liKSI'OXSK    TO 

Senate  resolution  of  Fehrnorii  'J J,  l!^'J2,  reUdive  to  nef/otiationfi  for  recip- 
rocal trade  ivith  Canada. 


June  20,  1892. — Reiul,  lelerietl  to  the  Committee  on  Relations  with  Canada,  and 

ordered  to  be  printed.  ,.^., 


To  the  Senate  of  the  United  States:  ■-.' 

The  following  n'solutioii  was  i»iissed  by  tho  Senate  on  the  24th  day 
of  February  last: 

ReHolv<:d,'l'hiit  the  I'residt'ut  l)e  i'e(|ut'st('d,  if  in  his  opinion  not  incomjiatihlc  with 
thepnlilic  interests,  to  inform  the  Senate  of  the  jtroeeedinfis  recently  had  with  the 
representatives  of  the  Dominion  of  Canada  and  of  tlie  IHritish  (iovernment  auto 
arrangements  for  rtMi])rocal  tradt;  Itetween  Cani:da  ami  the  I'nited  States. 

In  response  thereto  I  now  submit  the  following  n<forniation: 
On  tin'  ir)tli  day  of  Ajtril  last  tin'  Secretary  of  State  submitted  to 
me  a  report,  which  is  hei'i'with  transmitted.  Shortly  aft«'r  the  report 
came  into  my  possession  I  was  a<lvise(l  by  the  Secretary  that  the  British 
minister  at  this  capital  ha<l  informed  him  that  the  Canadian  Govern- 
ment desired  a  further  conference  on  the  subject  of  the  discriminating 
canal  tolls  of  which  this  country  had  <*omplained.  Tliis  information 
was  accomi)anied  by  the  suggestion  that  a  res[)onse  to  the  resolution  of 
the  Senate  might  properly  be  delayed  until  this  further  conference  was 
held. 

On  the  .'id  instant  the  Britisli  minister,  in  connection  with  Hon.  Mac- 
Kenzie  Howell  and  Hon.  George  10.  Foster,  members  of  the  Canadian 
udnistry,  were  received  by  the  Se(;retiiry  of  State,  and  a  further  con- 
ference took  place.  In  b()tli  of  the  <',onferences  referred  to  Hon.  ,Iohn 
W.  Foster,  at  the  request  of  the  Secretary  oi"  State,  aj)i)eared  with  him 
on  behalf  of  this  Government,  and  the  report  of  the  latter  conference 
was  submitted  to  me  on  the  <>th  instant  by  Mr.  l*'oster,  and  is  herewith 
transmitted.  The  result  of  the  conference  as  U>  the  practicability  of 
arranging  a  reciprocity  treaty  with  the  Dominion  of  Canada,  is  clearly 
stated  in  the  letter  of  Mr.  Blaine,  and  was  anticipated,  1  think,  by  him 
and  by  every  other  thoughtful  American  who  had  considered  the  sub- 
ject.   A  leciprocity  treaty  limited  to  the  exchange  of  natural  products 


mmn 


2 


RECIl'ROCAL    THADE    WITH    CANADA. 


would  luive  bfH'H  such  cmly  iu  fonn.  The  beiietits  of  such  a  treaty 
Avouhl  have  inuied  almost  wholly  to  Cauada.  Previous  experiments 
on  this  line  had  lte<'u  unsatisfactory  tt)  this  (roverument.  A  treaty 
that  should  be  recipiocal  in  fact,  and  of  mutual  advantage,  must  nee,- 
isssarily  have  eiubra<-ed  an  imjMUtant  list  of  manufactured  arti<*les,  and 
have  secured  to  the  Unite<l  States  a  free  or  favored  introdueti<m  of 
these  articles  into  Canada  as  apiinst  the  world;  but  it  was  not  believed 
that  the  ('anadian  ministry  was  ready  to  i)roi)ose  or  assent  to  such  an 
arrangement.  The  conclusion  of  the  ( 'anadian  commissioners  is  stated 
iu  the  rejxut  of  Mr.  IJlaine  as  follows: 

Iu  the  setroiul  place  it  scciiu'd  to  be  iiui)Ossil>le  for  flic  Canailinn  (ios  «'rnnieiit.  in 
view  of  its  jufHeiit  ])olitical  rt'lationH  and  olilijjatioiis.  to  exteiid  to  Aiiiericiiii  goods 
a  preferential  treatment  over  tliose  of  other  countries.  As  Canada  was  apartof  the 
British  Empire,  they  did  not  consider  it  conijtctent  tor  the  Dominion  Government  to 
enter  into  any  commercial  arrangement  with  the  I'nitcd  States,  from  the  Itenetits  of 
■which  (Jrea*^  Britain  and  its  colonies  should  be  ex<luded. 

It  is  not  for  this  Government  to  argue  against  this  announcement  of 
Canadian  official  ojnnion.  It  must  be  accejited,  however,  I  think,  as 
th(^  statement  of  a  condition  which  jilaces  an  insupej  able  barrier  in  the 
way  of  the  attainment  of  that  lar^e  and  beneficial  intercourse  and 
reciprocal  trade  which  ndght  otherwise  be  developed  between  the 
United  States  and  the  Donnuion. 

It  will  be  noticed  that  Mr.  Blaine  rejjorts  as  «me  of  the  results  of  the 
conference — 

an  informal  engagement  to  rei)eal  and  abandon  the  drawback  of  1^<  cents  a  ton  given 
to  wheat  (grain)  that  is  carried  through  to  Montreal  and  sliii)}ied  therefrom  to  Europe. 
By  the  American  railways  running  from  Ogdeusburg  and  Oswego  ami  other  Ameri- 
can ports  the  shipjters  paid  the  lull  20  cents  a  ton,  while  in  effect  those  by  the  way 
of  Montr<  1  ](ay  only  2  cents.  It  was  uiulerstood  that  the  Canadian  commissioners, 
who  were  ill  three  members  of  the  cabinet,  would  see  to  the  withdrawal  of  thie 
dis('rimiuation. 

From  the  report  of  the  recent  conference,  by  Mr.  Foster,  it  will  be 
seen  that  the  Canadian  comndssioners  declare  tliatthis  statement  does 
7U)t  conform  to  their  understanding,  and  that  the  only  assurance  they 
had  intended  to  give  was  that  the  complaint  of  the  Government  of  the 
Urdted  States  should  be  taken  into  consideration  by  the  Canadian  min- 
istry on  their  return  to  ( )ttauwa.  Mr.  Foster,  who  was  present  at  the 
first  conference,  c(m firms  the  statements  of  Mr.  Blaine.  While  this 
misunderstanding'  is  unfortunate,  the  m<ue  serious  ]>hase  of  the  situa- 
tion is  that,  instead  of  rescinding  the  discriminating  canal  tolls  of  which 
this  Government  complains,  the  Canadian  ministry,  after  the  return  of 
the  comndssioners  from  their  visit  to  Washington,  on  April  4,  reissued, 
Avithout  any  comnuiincaticni  with  this  Government,  the  order  continu- 
ing the  discrindnation,  by  which  a  rebate  of  IS  «'ents  a  ton  is  allowed 
up«m  grain  going  to  Montreal  but  not  to  American  i»orts,  and  refusing 
this  rebate  even  to  grain  g(»ing  to  JMontieal  if  transshipped  at  an  Ameri- 
can port. 

The  report  of  JMr.  Partridge,  the  solicitor  of  the  Departnu'ut  of  State, 
which  acconii»anies  the  letter  of  the  Secretary  of  State,  states  these 
di.scrindnations  M'ry  clearly.  That  these  orders  as  to  canal  tidls 
aiul  rebates  are  in  (lirect  violation  of  aiticle  -7  of  the  treaty  of  1871 
seems  to  be  clear.  It  is  wholly  evasive  to  say  that  there  is  no  discrimi- 
nation betwe«'n  Canadian  and  .Vmericaii  vessels;  that  the  rebate  is 
allowed  to  both,  without  favor,  ui)on  grain  carried  through  to  Miuitreal, 
or  transshipi»ed  at  a  Canadian  port  to  Montreal.     The  treaty  runs: 

To  secure  to  the  citizens  cf  the  United  States  tlie  use  of  the  Wellaud.  St.  I.,aw- 
reuce,  and  other  canals  in  the  Dominion  ou  terms  of  eciuality  with  the  inhabitants 
of  the  Dominion. 


^ 


I 


.     \ 


i 


suggest 


RECIPROCAL    TRADE    WITH    CANADA.  3 

It  was  intended  to  give  to  consumers  in  the  United  Stfiteis,  to  our 
people  engaged  in  railroad  transportation,  and  to  those  exporting  from 
our  ports  equal  tenns  in  passing  tlieir  uiercliandise  tltrough  these 
canals.  This  absolute  equality  «)f  treatment  wvs  the  consideration  for 
concessions  on  the  part  of  this  (Government  made  in  tlie  same  article 
of  the  treaty,  and  wiiich  have  l»een  faithfully  kept.  It  is  a  matter  of 
regret  that  the  Canadian  Government  has  not  resinuided  promptly  to 
our  request  for  the  removal  of  these  discriminating  tolls. 

The  papers  submitted  show  how  serious  th*-  loss  intlicted  is  upon  our 
lake  vessels  and  upon  some  of  our  lake  ports.  In  view  of  the  fact  that 
the  Canadian  commissioners  still  contest  with  us  the  claim  that  these 
tolls  are  discriminating,  and  insist  that  they  constitute  no  violation  of 
the  letter  or  spirit  of  article  27  of  the  treaty,  it  would  seem  approjjriate 
that  (Congress,  if  the  view  hehl  by  the  Executive  is  ai)proved,  should, 
with  deliberatitui  and  yet  with  p*  >mptness,  take  such  steps  as  may  be 
necessary  to  secure  the  Just  rigliis  of  our  citizens. 

In  view  of  the  delays  which  have  already  taken  place  in  transmitting 
this  correspondence  to  Congress,  1  have  not  felt  justified  in  awaiting 
the  furtlier  communication  from  the  Government  of  Canada  which  was 
suggested  in  the  recent  conlerence. 

Should  any  proposition  relating  to  this  matter  be  received,  it  will  be 
immediately  submitted  for  th<'  consideration  of  the  Senate;  and,  if 
forwarded  within  the  time  suggested,  will  undoubtedly  anticipate  any 
final  action  by  Congress. 

^    -         :        Ben.t.  Harrison. 

Executive  Mansion. 

June  20,  1892.  V.    .    -V--:    '^     ;>   >  -.  .  v;    .^,.^ 


1 


Department  of  State, 
Woahinf/ton,  April  15,  1892. 
To  the  President: 

The  Secretary  of  State,  to  whom  was  referred  the  resolution  of  the 
Senate  of  February  24, 1S92,  recpiesting  the  President  if,  in  his  oi)inion, 
not  iiu'ompatible  with  the  public  interest,  to  inform  the  Senate  of  the 
proceedings  recently  had  with  representatives  of  the  Dominion  of 
Canada  and  the  British  Government  as  to  arrangements  for  reciprocal 
trade  between  (Canada  and  the  United  States,  has  the  honor  to  submit 
the  following  report: 

In  the  month  of  0(;tober,  1890,  Hon.  Robert  Bond,  cohmial  secre- 
tary of  Ni'wfoundland,  visited  W;ishington  for  the  purpose  of  confer- 
ring with  the  Government  of  the  United  States  respecting  the  commer- 
cial relations  between  Newfoundland  and  the  United  States,  lie  was 
"presented  to  me  by  the  British  minister  in  this  city,  Sir  .lulian  Paunce- 
fote,  and  aft»'r  various  conferences,  continuing  thrcmgh  the  montlis  of 
October  and  November,  a  draft  of  a  reciprocity  convention  between 
the  United  States  and  X(nvfoundlan<l  was  framed  and  foiwarded  to 
Loudon  for  the  action  of  the  British  (Jovernment. 

This  fact  having  come  to  the  attention  of  the  Government  of  the 
Dominion  of  Canada,  a  strong  protest  was  forwarded  by  it  to  the  British 
Goverinnent  against  the  ratiftcati<in  of  the  action  of  the  coloniMl  minis- 
ter of  Newfoundland,  an<l  this  was  foUowed,  in  December,  1890,  by  a 
proposition  initiated  and  made  to  me  by  the  British  minister  in  Wash- 
ington, for  the  opening  of  formal  negotiations  in  this  city  for  a  treaty 


KECIPllOCAL    TRADE    WITH    CANADA. 


embniciiif;  ckiii  luncial  reciprocit'' with  Oaiiiida,  tlic  lislnu'U'H,  iiiul  other 
uiisetth>(l  (iiiostions  witli  tlie  Dominion  (loverniiu'ut.  I  (Inclined  to 
open  fornuil  n('ji(>tiiiti(»n.s,but  stat«Ml  that  I  would  be  willinj^' to  iiavca  full 
<iiul  pri\at(M',onftn'<'n((' witli  tlic  liritish  minister  nndoneor  more  a;;'<'nt.s 
of  Canada,  and  consider  with  rliem  every  subjj'ct  connected  with  the 
rehitions  of  the  tw(t  couidiies  upon  wiiicli  a  mutual  interest  could  be 
found'<|.  with  a  vi«'\v  to  fornnd  ne<;<itiations  should  the  ]»i'oposed  <-on- 
ferenee  indicate  a  probability  of  agreement  on  any  of  the  sultjects  dis- 
cuss«'d.  This  basis  was  accepted  by  the  IJritisii  miinster  and  the  Do- 
minion (lovernment,  l)nt  for  various  reasons  of  conveineiu;e  to  tiie  meni- 
bersof  the  pro])()sed  conferen -e  it  did  not  tal<e  place  until  I'Y'bruary  10, 
when  the  Britisli  niiidster  presented  to  me,  at  the  Depaitrtient  of 
State,  Sir  John  TlKHnpson,  minister  of  Justice,  lion.  (Jcoi-fje  K.  Foster, 
minister  of  lin;in;'e,  ami  lion.  Maclvon/ie  Uowell,  minister  of  ('ustonis, 
as  conunissioners  on  the  part  of  the  (ioveinmeiit  of  th«'  Dominion  of 
Canada,  to  i)artieipate  w^ith  him  in  the  conterenee. 

At  the  Hrst  conference,  on  February  10,  the  commissioners  stated  that 
they  were  autiiorized  by  the  Canadian  government  to  propose  the  re- 
newal of  the  reciprocity  treaty  of  1.S54  (which  was  terminated  in  l.SO(i 
by  the  action  of  the  Congress  of  the  United  States),  with  such  nnxlirt- 
eati(ms  and  extensions  as  the  altered  circumstances  of  both  countries 
,an<l  their  lespcctive  interests  might  seem  to  require. 

In  answer  to  an  inquiry,  tiie  coinniissioners  stated  that  the  mixliti- 
cations  or  extensions  contemplated  in  the  schedules  of  articles  should 
be  confined  to  natural  i)roducts  and  should  not  end)race  manufactured 
articles. 

The  commissioners  were  informed  that  the  Government  of  the  IJuited 
States  would  not  be  ])repared  to  renew  the  treaty  of  185+  noi'  to  agree 
upon  any  commercial  reciprocity  which  should  be  contined  to  natural 
products  alone;  aud  that,  in  view  of  the  great  development  of  industrial 
interests  of  the  United  States  and  of  the  ehanged  coiulitions  of  the  com- 
mercial relations  of  the  two  countries  siuce  the  treaty  of  isr)4  was  nego- 
tiated, it  was  regarded  of  essential  impiu'tance  that  a  list  of  nuxnufac- 
tured  goods  should  be  included  in  the  schedules  of  articles  for  free  or 
favored  exchange  in  any  reciprocity  arrangement  which  nught  be  made. 

The  commissioners  tlu'U  incpdred  if  the  (lovernmeut  of  the  Uuited 
States  would  expect  to  have  preferential  treatment  extended  to  the 
list  of  maiuifacturcd  goods  of  the  Uidted  States  on  their  introduction 
into  ('auada  by  virtue  of  a  reciprocity  treaty,  or  whether  it  would 
regard  the  Canadian  (luvernmeut  as  at  liberty  to  extend  the  same 
favors  to  the  numufactured  goods  of  other  countries  not  parties  to  the 
treaty  on  their  introduction  into  Canada. 

The  rejdy  given  them  was  that  it  was  the  desire  of  the  (rovernment 
of  the  Uuited  States  to  nudce  a  reciprocity  convention  which  would  be 
ex<'lusive  in  its  a[q>licati<ni  to  the  United  States  and  Canada,  and  that 
other  countries  which  are  not  parties  to  it  slnmld  not  enjoy  gratuitously 
the  faviU's  which  the  two  neighlxuing  countries  might  reciprocally  con- 
cede to  each  othei-  for  valuable  considerations  and  at  a  large  sacrifice 
of  their  respective  reveiuies. 

Upon  receiving  this  reply,  the  Canadian  connnissionci's  asked  that 
the  further  considcratiiui  of  the  subject  be  adjcuuned  till  another  con- 
ference, to  enable  them  to  c<Hisult  as  to  the  course  which  they  would 
adopt  in  view  of  the  foregoing  declaration.  ■ 

In  the  confereuee  of  the  11th  the  Canadian  commissiouers  stated 
that  they  had  given  careful  consideration  to  the  suggestion  that  manu- 
factui'ed  goods  should  be  included  in  the  schedules  of  articles  for  ex- 


i 


i 


■  * 

r: 


RECIPROCAL     TRADi:    WITH    CANADA. 


5 


ti 


i 


cliau<?e  ill  a  icciprocity  <'(Hiventioii,  and  to  the,  desiro  expressed  by  the 
Govenimeiit  of  the  United  States  tiiat  such  American  <,n)ods  on  their 
introdnction  into  Canada  should  he  aecorch'd  jaeferential  treataient 
over  siniihy  yoods  from  other  countries;  and  tliey  announced,  with  an 
expression  of  re.i;ret,  tiiat  they  did  not  c<Misider  it  jtossihh'  to  meet  the 
expi'ctations  of  I'le  (io\erninent  of  the  United  States  in  tlu'se  lespects. 
In  the  first  place  they  enciamtered  a  serious  oi>stach'  in  tiu'  matter  of 
revenue,  if  any  cousideral»le  listof  manufactnred  ^ioodsol'  the  TTnited 
States  slumid  l)e  admitted  free  into  Cana<hi,  it  would  entail  a  nutterial 
loss  t«)  the  Dominion  treasury,  and  if  the  same  favors  were  hke wise,  ex- 
ten(h^d  to  the  men-handise  oi'  other  countries  the  loss  of  re\-cnue  wcmld 
be  much  ji;reater.  They  felt  that  they  wouh'  not  b(!  able  ut  rec(aip 
these  losses  by  other  methods  of  taxation.  In  the  second  i>h>ce,  it 
seemed  to  be  impossil)le  for  the  Canadian  (iovernment.  in  view  of  its 
l)resent  political  iclationsand  oldii-ation.,,  to  exten<l  to  Anu'ricau  j;oods 
.1  preferential  treatment  over  those  ofotlier  countiies.  As  Canada  was 
a  part  of  tlic  liritish  I^jUipire,  they  did  not  consider  it  competent  for  the 
Dominion  (loNcrnmeut to  enter  into  any  commercial  anaiif;ement  with 
the  United  States,  from' the  benelits  of  which  Crreat  llritain  an<l  its  col- 
onies should  be  excluded. 

The  announc(5ment  of   these  (tonclusions  of  the  Canadian  comniis- 
8ion»rs  was  accei>ted  as  a  l)ai' to  further  ne'-'otiations  (Mi  this  subject,' 
and  it  was  not  afjain  discussed,  except  in  connecticm  with  the  fishing 
privilejics  (ui  the  Atlantic  coast. 

In  the  confcreiM'c  of  F('l)ruary  12,  a  proposition  was  nuule  by  the 
Canadian  commissioners  that  in  the  United  States  and  Canada  all  duties 
should  be  renujved  from  tish  and  the  products  of  Hsh.  and  that  the 
Canadian  licenses  now  granted  United  States  lishing  \essels  and  the 
privileges  incident  thereto  be  accorded  them  free  of  charge. 

This  proposition  was  not  accepted  tor  the  reas<nis  that  the  privileges 
therein  ottered  to  Anu'rican  tishermen  in  Canadian  territory  was  only  a 
partial  and  an  inaderpiate  relief  from  thediscrimimition  and  inequality 
of  which  they  had  so  huig  complained,  and  that  the  measure  of  reciproc- 
ity contained  in  the  ])roposed  free  admission  of  tish  into  the  two  coun- 
tries was  not  regarded  as  reasonable  or  equal. 

In  the  confereiu'e  of  the  11th  the  Canadian  Connnissiouers  proposed 
that  the  privileges  of  the  coasting  trade  both  in  the  waters  of  the 
Atlantic  coast  and  of  the  lakes  be  recipro(;ally  open  to  the  vessels  of 
both  Canada  and  the  United  States;  but  the  proi»osition  was  declined 
as  one  which  the  Government  of  the  United  States  was  not  at  juesent 
disposed  to  consider. 

Other  questions  were  informally  discussed  by  the  conference.  A  com- 
mission to  fix  the  bouiulary  separating  Ahiska  from  British  territory 
was  the  first. 

The  next  was  the  regulation  respecting  wreckage  on  the  Great  Lakes, 
and  the  rules  governing  the  same. 

Th<;  third  was  the  appoiutnuMit  of  a  ciuinnission  of  oiu*  expert 'from 
each  country  to  examine  and  report  the  measiues  necessary  to  arrest 
certain  pra<*tices  which  are  detrimental  to  the  tish  in  both  «'0untrie8. 

The  fourth  was  that  of  placing  a  line  of  buoys  lui  the  line  between 
the  two  coiuitries,  on  the  St.  Croix  River  where  it  loses  itself  in  Passa- 
macjuoddy  Hay.  These  several  subjects  were  favorably  considered  by 
the  conference.  They  will  l>e  subjects  for  consideration  in  an  otticial 
conference,  or  some  of  them  may  be  disposed  of  by  legislation  between 
the  two  countries. 


BECII'ROCAL   TRADP:    WITH    CANADA 


The  (iftli  was  an  iiifoniial  fiiiyajjeiiuMit  to  repeal  and  abandon  tbe 
diawback  of  l-S  cents  a  ton  };iven  to  wheat  that  is  carried  thioiifi'li  to 
Montreal  and  slii])|K'd  tlieref'roni to  Europe.  By  the  American  lailways 
running  IVoin  ()<>(lcnsl>nr}4"  and  Oswego  and  otiier  Auierieay  ])orts  tlie 
sliippers  jiay  the  tnll  L'U  cents  a  ton,  wliih'  in  etfect  tliose  by  tiie  way 
of  Montri'al  pa\  only  2  cents.  Fi  was  understood  that  tlie  Canadian 
<!OiniMissiouers,  wlio  were  all  thict;  nuMubers  of  the  cabinet,  would  see 
to  tlie  withdrawal  of  this  discrimination.  It  is  obviously  in  vi<»lation 
of  the  provisions  of  tiie  twenty-seventh  article  of  the  treaty  of  1.S71. 
We  learn  of  late  that  it  has  Imm'U  leiinposcd  for  the  year  1<S1)2,  and 
unless  we  icsortto  some  form  of  retaliation  our  shippers  and  transporta- 
tion eomjjanies  will  be  subjected  <'ontinually  to  this  unfair  charjjfe,  I 
jil)pend  hereto  a  ie[)ort  from  the  Solicitor  of  this  Department,  setting 
forth  in  detail  the  facts  of  this  discrimination  and  copies  of  corre- 
.spondence  relating  to  the  subject. 

The  conferen  -e  closed  on  the  IGth  of  February  last. 

Attached  hereto  is  the  list  of  articles  agreed  upon  tVn-  reciprocal  ex- 
change by  tin'  treaty  of  l.s.")4,  which  was  terminated  in  1<S<;g  by  means 
of  a  joint  resolution  of  the  ('ongiess  of  the  United  States.  It  wilH^e 
seen  that  the  articles  were  conlined  t^^  natural  products. 

With  few  exceptions,  the  articles  of  the  schedule  are  piodueed  in 
both  countries  in  abundanci^.  Both  countries  have  a  great  number  of 
them  for  exjxut.  They  do  not  form  the  basis  of  a  treaty  of  reciprocity  in 
the  proper  sense.  The  re<iprocal  treaties  made  in  l-siU  uniformly  took 
from  this  country  something  which  the  others  did  not  produce  and 
gave  us  something  which  we  did  not  jn-oduci'. 

In  1S74  the  British  minister  in  this  city,  aided  by  plenipotentiaries 
from  Canada,  framed -a  reciprocity  treaty  and  ]>roposed  its  acceptance 
by  the  (Jovernment  of  the  CJnited  States.  The  President  submitted 
the  unsigned  draft  to  the  Senate  for  its  consideration  and  advice,  but 
it  failed  to  receive  the  apinovid  of  that  l»od\'.  The  schedules  of  arti- 
cles in  the  projtosed  treaty  not  only  embi'aced  all  the  natural  products 
contained  in  the  terminated  treaty  of  18o4,  but  in  addition  a  long  and 
important  list  of  manufactured  articles,  which  enhanced  its  value  to 
the  United  States  ovot  tin'  treaty  of  1854. 

The  trade  statistics  for  1800  show  that  the  total  exports  from  Canada 
into  the  United  States  amounted  iu  value  to  »i!39,04li,()00  and  of  this  sum 
$38,442,000  consisted  of  natural  products. 

The  chief  competitor  of  the  United  States  for  the  import  trade  of 
Canada  is  Great  Britain.  For  the  last  tiscal  year  the  import  trade  was  as 
follows :  From  the  United  States,  *53,68.-),057';  Great  Britain,  $42,047,r>26 ; 
all  othei-  countries,  .f  17,011,941.  If  Great  Britain  should  be  permitted 
to  enjoy  gratuitoiisly  the  beneftta  conferred  ujwn  the  United  States  by 
means  of  a  reciprocity  treaty,  its  benefits  to  the  latter  country  would, 
in  a  great  measure,  be  neutralized. 

Respectfully  submitted. 

James  G.  Bl'aine. 


KhCIPIiOCAL   TRADK    WITH    CANADA. 


[Article  rir,  Treaty  wlt)i  Orvat  Hrltalii  of  185i.] 


9 


It  is  iifi^rued  that  t1it»  articles  emiinurati 
tho  yiowtli  aiul  inodiico  of  tin-  id'oresai 
sliall  l>i;  ailmitteil  into  each  country  rcspi 

Grain,  Hour,  an<l  brtiadsmiVH  of  all  kinds. 

Animals  of  all  kimlH. 

Fre.sh,  siuokcil,  and  salted  moiits. 

Cotton  wool,  siumIh,  and  vegetables. 

IJndricd  fruits,  dried  fruits. 

Fisii  of  all  kinds. 

Prodmtsof  tisli,  and  of  all  other  creatures 

living  in  tlie  water. 
Poultry,  eggs. 

Hides,  furs,  skins,  or  tails,  undressed. 
Stone,    or   marble,    in   it.s  crude   or    un- 

wronght  state. 
Slate. 

Butter,  cheese,  tallow. 
Lard,  horns,  manures. 
Ores,  of  metals,  of  all  kinds. 
Coal. 


d  in  the  sehttdule  hereunto  annexed,  being 
d  British  colonies  or  of  the  United  States, 
etively  free  of  duty : 

I'iteh,  tar,  turpentine,  ashes. 
I  Timber,  and  lumber  of  all  kind.-*,  round, 
I       heweil,  and  sawed. unmanufactured  in 
I       whole  or  in  i)'M't. 

I'irewood. 

Plants,  shrubs,  and  trees. 

I'elts,  wool. 

Fish  ni\. 

Kice.  broom  corn,  ;iud  bark. 

r}yi»sum.  ground  or  unground. 

Hewn,  or   wrought,  or  unwrought  burr 
or  grindstones. 
I  Dyestutt's. 

FJax,  hemp,  and  tow,  uumauufai  tured. 

I'limanufactrieil  to  -acco. 
I  Kags. 


[Article  IV,  Draft  of  Treaty  with  Ureat  Hritiiiii,  1874.  | 

It  is  agreed  tluit  the  articles  enumerated  in  the  Schedules  A,  M,  and  C,  hertMinto 
annexed,  lieing  the  growth,  produce,  or  manufacture  of  the  Ij'ominionof  (.'anada  or 
of  tli(^  United  States,  shall,  on  their  imjKjrtation  from  the  one  country  into  the  other, 
from  the  1st  day  of  July,  187."),  to  the  .SOth  day  of  .June.  187f)  (both  included),  pay 
only  two-thirds  of  the  (luties  payable  at  the  date  of  this  treaty  on  the  importations 
into  such  country  of  such  articles  resjx'ctivtdy ;  and  from  the  1st  <lay  of  July,  1876, 
to  the  30th  day  of  .June,  1877  (both  included),  shall  pay  one-third  of  such  duties, 
and  on  and  after  the  Ist  day  of  .July,  1877,  for  the  iteriod  of  years  mentioned  in  ar- 
ti(de  XIII  of  this  treaty,  shall  be  admitted  free  of  duty  into  each  country,  respec- 
tively. 

For  the  term  montioned  in  article  xiii  no  other  or  higher  duty  shall  be  imposed 
in  the  United  States  upon  other  articles  not  enumerated  in  said  schedules  the 
growth,  produce,  or  manufacture  of  Canada,  or  in  Canada  upon  such  other  articles 
the  growth,  produce,  or  manufacture  of  the  I'nited  States,  than  are  respectively 
im]»o8ed  upon  like  artich's  the  growth,  produce,  or  manufacture  of  (ireat  Britain, 
or  of  any  other  country. 

Schedule  A. 

Cousi-sts  of  the  f(dlowing  naturiil  products:  / 


Animals  of  all  kinds. 

Ashes,  pot,  pearl,  and  soda.     % 

Bark. 

Bark  extract,  for  tanning  purposes. 

Bath  bricks. 

Breadstutfsof  all  kinds. 

Bricks  for  building,  and  tire  bricks. 

Broom  corn. 

Burr  or  grind  stones,  hewed,  wrought,  or 
unwrought. 

Butter.  '. 

Cheese. 

Coal  and  coke. 

Cotton  wool. 

Cotton  waste. 

Dyestulfs. 

Earths,  clays,  ochers,  sand,  ground,  or 
unground. 

Eggs. 

Eisn  of  all  kinds 

Fish,  products  of,  and  of  all  other  crea- 
tures living  in  the  water,  except  tish 
preserved  in  oil. 


Firewood. 

Flax,  unmanufa(!ti:red.  ^ 

Flour,  and  meals  of  all  kinds. 

Fruits,  green  or  dried. 

Furs,  undressed. 

(irain  of  all  kinds. 

Gypsum,  ground,  unground,  or  calcined. 

Hay. 

Hemp,  unmanufactured. 

Hides. 

Horns.  v 

Lard.  :  , 

Lime.  '       •    ( 

Malt. 

Manures. 

Marble,  stone,  slate,  or  granite,  wrought, 

or  unwrought. 
Meats,  fresh,  smoked,  or  salted. 
Ores  of  all  kinds  of  metals. 
Pelts. 

Pease,  whole  or  split. 
Petroleum  oil,  crude,  refined,  or  benzole. 
Pitch. 


RECIPROCAL    TRADE    WITH    CANADA. 


Plants. 

Poultry  and  hinls 

Ra<;s  of  ail  kinds. 

Kiie. 

Salt. 

Seeds.  <   : 

Shriil)8. 

Skins. 

Straw. 

Tails. 

Tallow. 


of  all  kinds. 


Tar. 

Timber  ;  ad   lumber  of  all  kinds,  round, 

iifwed,    and  sawed,   manufactured   in 

whole  or  in  ]»art. 
Tobacco,  unmanufa'.'tiired. 
Tow,  unmanufactured. 
Trees,  • 

Turpentine. 
Vej.' eta  bios. 
Wool. 


^^ 


< 


SCHKOUI.K    B. 


Consisting  of  the  followin;,  agricultural  imi)lements: 


Axes.  ,         _   , 

Hagholders. 

Beehives. 

Bone-irushers,  or  parts  thereof. 

Cultivators,  or  ]iarts  thereof. 

Chafi'-cutters.  or  jjarts  tht^reof. 

Cfirii-hnskers,  or  parts  thereof.;    ■ 

Cheese-vats. 

Cheese-factory  heaters. 

Cheese-presses,  or  jiarts  thereof. 

Ohurns,  or  parts  tlureof. 

Cattie-feed  boilers  and  steamers,  or  parts 

tliere(»f. 
Ditchers,  or  ])arts  thereof. 
Field  rollers,  or  parts  thereof. 
Kaniiiiig  mills,  or  ]iart  thereof. 
reed-eho])|iers,  or  parts  thereof. 
Forks  for  hay  and  mainire.  hand  or  horse. 
Grain  drills,  or  jiarts  thereof. 
(irain-crtish;'i's,  or  i)arfs  thereot". 
Harrows. 


i  Hoes,  hand  <»r  horse. 

I  Horserakes. 

:  Horse-power  niaehines.  or  )iarts  therei)f. 

i  Hay  tedders,  or  parts  thereof. 

j  Licniid  uiauure  carts,  nr  jiarts  rheraof. 

i  Manuie  sowers,  or  jiarts  thereof. 

'  Mowers,  or  parts  thereof. 

I  Oil  and  oil-eake  oiush'-rs,  or  parts  thereof. 

j  Plow-,  or  jiarts  thereof. 

liof>1  and  seed  jdanters,  or  parts  thereof. 
I  Root-cutters.   ]nilpers,    and  washcrei,   or 
parts  thereof. 

Rakes. 
!   Rea]iers,  or  parts  thereot", 
\  Reaper  and   niowei-  eombined,   or   parts 
i        thereof. 
I  Sjiades. 

Shovels, 
I  Scythes. 
I  Snaiths. 
!  Thiashiiig  niaehines,  or  jiarts  tlu'reof. 


Schedule  C. 


Consisting  of  the  following  manufactures: 


Axles,  all  kinds. 

Boots  and  shoes,  of  leather. 

Boot  aad  shoe  making  niaehines. 

Buttalo  rolx's  dresseil  a:i<i  trimmed. 

Cotton  grain  bajis. 

Cotton  denims. 

Cotton  jeans,  unbleached. 

Cotto'i  drillings,  tinbleached. 

Cotton  tickings. 

Cotton  plaids. 

Cottonades,  nnbleache<l, 

Cibinet    ware   and    furniture,    or   parts 

then^of. 
Carriages,     eaits.     wagons,    and     other 

wheeled  vehicles  and  sleighs,  or  parts 

thereof. 
Fire  engines,  or  parts  thereof. 
Felt  lovering  for  boilers, 
Gr.ti     percha  belting  and  tubing. 
Iron,  bar,  hoop,  pig.  pu<i<lled,  md,  sheet, 

or  scraj*. 
Iron  nails,  spikes,  bolts,  tucks,  brads,  or 

sjuigs. 
Inm  cast  tugs. 
India  rubber  lielting  and  tubing. 


Leather,  li;irness,  and  sadilleiv  of. 

>!ill,  or  f'sKtory,  or  steamboat  fixed  en- 
gines and  maeliines,  or  jt.irts  thereof. 

Manutaetu'ts  of  marble,  stone,  slate,  or 
gianite. 

Mauufaetures  of  wooil  solely.  <u'  wood 
nailed,  bound,  hinged,  or  locked  with 
metal  mati-rials. 

Mangles,  washing  machines,  wringing 
Miaehiues,  and  drying  machines,  orparts 
tiierecd'. 

Printing  jiapcr  for  newsji.ip.'is, 

F'ajier-making  maehiues,  or  partsthereofT 

Printing  type,  presses,  and  fiddi»rs,  i»aj)er- 
cutters,  ruling  ma<'hiiies,  page-number- 
iiig  machines,  .md  ster.otyj»ing  and 
electrotvping  apparatus,  or  partsthere- 
<»f. 

Refrigerators,  or  parts  therectf. 

Railroad  cars,  caviiages,  and  trucks,  or 
)tarts  theieof. 

Satinets  of  wortl  and  cotton. 

Steam  engines,  or  parts  thereof. 

Steel,  wrought  or  cast,  and  steel  (datefi 
and  rails. 


Lo('ouiotiv<'s  for  railways,  m  parts  there-  i  Tin  tubes  .ind  idpinj, 


of. 


Lead,  sheet,  or  pig. 
Leather,  sole  or  upper. 


T\vee<ls  of  wiHH  solely. 
Water-wheel  machines  and  npp.xrutns,  or 
parts  thereof. 


»    {■■  • 


1 


*     B    * 


*     II      * 


t   mM  • 


RECIPROCAL    TRADE    WITH    CANADA. 


Mr.  PartvUlge  to  Mr.  lihdne. 


9 


Department  of  State, 
W<i.shlii(/toii,  April  II,  IS!K-J. 
Sir:  By  your  dirocti.m  I  have  the  lioiior  to  report  to  you  respretiug 
the  (lisi'riininatiou  of  the  GoveruuuMit  of  the    Dominion  of  Cniuula 
against  the  eitizeus  of  the  Tnited  States  in  the  use  of  the  Wclland  and 
St.  Lawrenee  eauals. 

Artiele  27  of  the  treaty  of  Wasliingtou,  coiu'hided  May  S,  1871  (17 
Stat.,  <S72),  provides: 

The  Oovcrinntint  <>r  Her  I'.ritaunic  .Majestx  cubage.-.  t:>  iir^e  n)»i>ii  rlic  (Tdvcniiiii'ut 
of  the  Diiuiiiiiiin  of  Canada  to  secure  to  the  eiti/.eiisot  the  United  S'ates  tlie  nse  ofthr 
Welhuid.  St.  I.awiNMire,  and  other  canals  in  tlie  I)oi..!iiion  (MI  terms  <d'  equality  w  ith 
the  inlialiitants  of  the  Daniiniou;  and  the  (ioNerinneiit  id"  the  I'nitcd  States  enjrajfes 
that  the  subjects  of  Her  llritannic  Majesty  shall  enjoy  the  use  (d'  the  St.  Clair  Flats 
Ca".:;!  on  terms  of  eipiality  with  the  inl>ai)it;mt<  of  the  United  States,  and  further 
enijajies  t«.  ur,i>-e  upon  the  .State  u:overnin(;nts  to  secrure  to  ^he  s;il)JiTts(d'  Her  Hvitannie 
Majesty  the  use  of  the  se\  eral  State  canals  connected  with  tli  ■  navigation  of  tin'  lakes 
or  rivers  traversed  by  or  eonri^iums  to  the  Ijoundary  line  l>etwe<'n  the  ]>ossessions  of 
theingh  contractiu<r  paiiies  on  terms  of  ('((uality  with  the  inhabitants  of  the  United 
."States. 

The  '>bje(;t  of  the  article  was  phnnly  to  secure  to  the  citizens  and  sub- 
jects of  tlie  United  States  a?ul  Oanaihi,  respectively,  e([ual  ])rivileges 
in  the  use  of  the  canals  connected  with  the  nuvijiation  of  the  Great 
Lakes  and  the  St.  Lawrence  Iviver.  Inasmuch  as  the  Wclland  St.  Ivaw- 
rence,  and  other  canals  in  Caiiiida  were  the  property  of  the(i(»vernmeut 
of  the  Dominion,  which  was  not  directly  a  party  to  tlu-  treaty,  Her 
MajestyV;  (lovernmcnt  could  Oidy  undertake  to  urjjfc  ui)on  theCa.iadian 
CTOvernment  to  secure  their  use  to  our  citize/is  upon  terms  of  cqtiality 
with  Its  own  iuluibitants.  On  the  other  hand,  this  (Tovernment  at  that 
time  owned  and  controlled  the  St.  Clair  Flats  Canal.  Ileuce  the  stipu- 
lation for  its  us«'  by  liritish  subjects  on  terms  of  ccpmlity  witii  our  iu- 
liabitants  was  nuid(^  explicit.  VVitli  respect,  however,  to  other  Ameri- 
can canals,  the  engaf^enu'nt  of  this  Government  was  sim])ly  reciprocal 
tj  the  enga<'ement  undertaken  by  tin'  Go\ernment  of  Her  Majesty. 
Although  th3  circumstauccs  of  the  ci'.-ic  required  that  article  1*7  of  the 
treaty  of  IH71  sru)ul(l  take  the  form  which  it  did,  it  can  not  be  dotd>ted 
that  it  was  nitended  to  secure  thereby  complete  ei|uality  to  the  citi/cr.s 
of  each  country  in  the  use  of  the  canals  of  the  other  necessary  to  the 
nav»;fsition  of  the  Great  Lakes  and  the  St.  Lawrence  Kiver. 

As  regards  such  of  these  (tanals  as  are  within  tlu*  territory  of  the 
United  States,  I  understand  that  they  are  not  only  used  by  Canadians 
on  terms  of  peifect  e(|uality  Aitli  the  citizens  of  this  country,  but  that 
in  fact  they  are  enjoyed  by  them  free  of  any  dues  oi'  tonnage  tax  what- 
ever. 

Notwithstanding  the  full  comj)liance  of  this  Government  with  the 
spirit  of  the  treaty  as  regards  American  canals,  and  the  liberality  of 
its  [»olicy,  which  has  opeiunl  them  free  of  tolls  ro  Canadian  com- 
merce, this  Department  has  received  numerous  complaints  tentling  to 
show,  and  which  it  is  believed  do  satisfactorily  show,  that  the  Domin 
ion  (ff  Canada  has  for  some  time  discriminated  against  our  citizens  iti 
the  use  of  her  canals. 

The  facts  as  represented  to  the  Dei)artment  are  substantially  as  fol- 
lows : 

The  Canadian  Government,  in  addition  to  vessel  tolls,  also  imjtosesa 
cargo  toll  on  trattic  i>assing  thnaigh  the  Wellaml  ami  St.  Lawrence 
canals.    This  cargo  toll  in  tlie  ca.se  of  wheat  and  other  cereals  an?onnt« 


10 


RECIPROCAL  TRADE  WITH  CANADA. 


to  20  cents  per  ton.  For  some  years  past,  however,  the  Canadiau  Gov- 
ernment, by  orders  in  council,  has  granted  a  rebate  of  18  cents  per  ton 
on  grain  carried  through  tliesecanals,  provided  it  was  carried  through  to 
Montreal  or  some  i)ort  east  of  Montreal.  Tlie  rebate  is  not  allowed  if 
the  grain  is  destined  for  an  American  port. 

As  boats  of  the  class  engaged  in  carrying  grain  from  the  upper 
lakes  through  the  Welland  Canal  are  unable  to  pass  througli  the  St, 
Lawience  canals  to  jMontreal,  it  is  necessary  to  transfer  cargoes  for 
that  j)ort  to  lighter-draft  vessels.  This  transfer  w;:s  usually  nmde  at 
Kingston,  Ontario,  directly  fioni  the  vessel  to  the  river  barges.  Du)- 
ing  the  season  of  181)0  grain  foi'  Montreal  began  to  be  transferred  at 
Ogdensburg,  N.  Y..  where  there  are  large  elevators  and  .storage  cai)ac- 
ity.  Although  the  orders  in  ccmncil  granting  the  rebate  weie  abso- 
lute in  teinis,  the  Canadian  Government  at  first  declined  to  pay  the  re- 
bate on  grain  transshipped  at  Ogdensburg,  and  did  not  decide  to  do  so 
until  alter  the  close  of  navigation.  In  the  meantinu^  the  business  of 
transshipment  at  Ogdensburg  was  seriously  embarrassed. 

To  prevent  such  transshipment  at  Ogdensburg  the  Canadian  Govern- 
ment, in  Its  order  in  council,  issued  March  25,  1801,  providing  for  the 
usual  rebate  of  18  cents  per  ton  on  grain  for  Montreal  and  ports  east 
during  the  season  of  1801,  inserted  a  new  condition,  as  follows :  "  Trans- 
8hi])ment  if  at  a  CanndUm  intermediate  port  shall  not  i)revent  the  re- 
fund aforesaid  being  made."  Since  then  no  rebate  has  l)een  allowed 
on  grain  for  Mcmtreal  tran8shii)ped  at  an  American  pent. 

On  the  4t.h  instant  the  (Canadian  (Jovernment  Issued  a  similar  order 
in  council  for  the  present  year,  1802,  reducing  by  rebate  tlie  tolls  on 
grain  carried  through  the  Welland  and  St.  Lawrence  canals  for  Mon- 
treal or  jtorts  ejjst  from  20  ceiits  to  2  cents  per  ton.  Its  conditions  are 
as  folio  vvs: 

Tliat  tho  j)ioductM  aforoHaid  on  which  th<'  rcbiit*'  of  tolls  may  ^»e  claimed  shall  be 
Hhowii  to  have  hceu  oiijiinallv  shipped  for  Montreal  or  for  some  port  east  of  Mont  real, 
and  shall  he  shown  to  have  Ix-en  carried  to  Montreal  or  to  some  port  east  of  Montreal, 
and  actually  sent  out  of  the  country. 

That  the  rij^ht  to  this  rei)ati'  shall  not  l>e  lost  ])y  reason  of  intermediate  transship- 
ment, provided  that  the  jdacc  of  such  transshipment  is  one  within  the  Dominion  of 
Canada. 

'I'hat  the  right  to  this  rebate  shall  extend  to  any  ])ortion8  of  cargoes  lightered  at 
Port  Colhorue  and  reshipped  at  Port  Dalhonsie,  and  also  to  shipments  of  the  above- 
named  i)r()dncts  miide  from  •iny  (':inadiiiu   Lake  (Ontario  jtort. 

That  payment  (dthe  amount  to  be  refuntled  be  made  from  time  to  time  as  cargoes 
of  th(^  said  products  arc  dispiitclie<l  for  export  from  Montreal  or  from  8ume  port  east 
of  Montreal. 

This  order  discriminates  agiiinst  our  citizens  in  at  least  three  re- 
spects : 

(1)  In  that  it  makes  the  toll  on  grain  for  export  from  Montreal  and 
other  Canadian  ports  east  of  Montreal  2  cents  per  ton,  while  the  toll  on 
grain  for  export  from  American  ports  is  20  cents  i)er  ton. 

(2)  In  that  even  the  lesser  rate  is  refused  on  grain  tor  Montreal  and 
ports  east,  if  it  has  been  transshipped  at  an  Anuuican  port,  while  it  is 
allowed  if  transshipped  at  a  Caniidian  port. 

(3)  In  that  the  2 cent  rate  only  is  levied  on  grain  for  Montreal  and 
ports  east  from  uny  Canadiau  Lake  Ontario  port,  while  the  20-<*ent  rate 
is  exiicted  on  gruin  for  tlie  same  destiinithm  from  American  Lake  On- 
tario ports.  This  is  a  new  discriminiition  not  <'ontained  in  the  order  of 
March  25,  1801. 

Ah  a  result  (►f  tliis  system  )f  rebates  it  ap])ears  from  the  oftit'ial  cainil 
statistics  of  Ciintuhi  that  during  the  season  of  18iM),  on  22H,51.'{  tons  of 
grain  carried  throtigh  the  Welland  Canal  to  Montreal  only  $4,570  toll 


'   m  * 


RECIPROCAL  TRADE  WITH  CANADA. 


11 


was  exii'^ted.  wliile  on  24."»,!)32  tons  of  jj;iaiii  which  i)as.s(Ml  down  the 
saine  canal  to  Ojideiisbuig,  Oswego,  aiul  other  United  States  ])ort8 
$40,1S(>  was  exacted. 

Th«^  taiiir  ot  tolls  on  coal  is  no  less  discriminating.  April  11,  1800, 
the  Canadian  Government  issued  an  order  reducing  tiie  toll  on  coal 
pas.sing  down  the  canal  from  L'O  cents  to  10  (!ents  per  ton,  but  leaving 
the  full  toll  of  -0  cents  on  coal  l)(>und  u])  tiie  canal.  According  to  the 
oflicial  canal  statistics  of  C!anada  during  the  season  of  1800,  L'2,781  tons 
of  coal,  |)aying  a  toll  of  10  cents  ])er  ton.  were  carried  down  the  canal 
in  Canadian  vessels.  Only  M")  t(Mis  were  carried  down  in  American 
vessels.  Of  the  coal  c!irri«Ml  up  the  canal  and  compelled  to  pay  a  toll 
of  20 cents,  11(!,(»1(»  tons  were  carried  betwecMi  i)ortsof  the  Tuited  State^i, 
17,280  from  a  I'nited  States  to  a  Caimdian  i)ort.  and  <S0  tons  only  be- 
tween Canadian  ports.  An  adJustnuMit  of  up  and  down  tolls  on  coal 
producing  so  discriminating  results  (^ouhl  hardly  have  been  uninten- 
tional. The  sani",  results  are  seen  in  the  general  business  of  the  canals. 
It  is  alleged  that  of  the  total  cargo  tcmnage  of  the  Welland  Canal  during 
the  year  1800,  .")7  i)er  cent  destined  tor  American  ports  paid  more  than 
72  per  cent  of  its  tolls,  aiid  4.'5  i)er  cent  destined  from  Canadian  porta 
paid  less  than  28  per  cent. 

The  Department  has  not  yet  been  able  to  obtain  a  copy  of  the  othcial 
«anal  statistics  of  Canada  for  the  navigation  season  of  1801.  nor  is  it 
informed  wlu^ther  they  are  yet  published.  It  is  rei»resented  to  the 
Dei)artment,  however,  by  the  Lake  Carriers'  Association,  of  Ikittalo, 
that  the  tratlic  passing  through  the  Welland  Canal  in  bSOl  for  Ogdens- 
burg  alone  paid  !jr),">,037.0.")  toll,  while  if  the  same  trathc  ha<l  been  bound 
for  Montreal  or  ports  east,  tlu'  toll  would  have  been  oidy  #7,300.04. 
There  was  also  .'$."»,710.."»(i  collected  on  grain  for  Montreal,  which  was 
transsliii)pedat  Ogdensbuig,  which,  if  transshijjptHl  at  a  (Janiulian  ]>ort, 
would  have  only  paid  'fr»71.0(»,  making  a  total  discriininatitui  in  the  use 
of  the  Wellaml  <'anal  against  the  business  of  the  ])ort  of  Ogdensburg 
ah)ne  for  the  season  of  1801  of  $52,82.3.71.  It  is  further  rejuesentwd 
that  its  traffic  was  compelled  t<»  pay  the  full  toll  of  l.">  cents  in  the  St. 
Lawrence  canals,  whik'  the  Montreal  gra,in  traffic  passed  thiough  them 
free.  It  was  also  deprived  of  its  natural  share  of  the  business  of  trans- 
shipping gr".in  intended  for  Montreal  and  ports  east. 

T]>e  Commissioner  of  Navigation,  in  his  annual  report  for  1888,  called 
Attention  to  he  discriminaticm  of  the  (Canadian  Coverument  against 
our  citizens  with  resi)ect  to  the  navigation  of  its  i^anals.  The  Secre- 
tary of  the  Treasury  referred  the  nmtter  to  this  l)ei>artn>eut,  and  Mr. 
Bayard,  on  the  21st  of  .Inly,  1888,  wrote  the  British  minister  about  it. 
The  latter,  on  the  13th  of  August,  18S8,  repliecl,  transmittii'g  a  eopy  of 
a  report  of  the  Canadian  luivy  council.  There  appears  to  have  been 
no  further  di])lomatic  correspondence  at  that  time.  ( Foreign  Relations, 
1888,  pp.  813,  814,  and  824.) 

Recently  this  subject  was  again  presented  to  the  Department  (juite 
iully  by  a  memorial  from  the  Lake  Carriers'  Association,  of  Hurt'alo,  N. 
Y.,  date<l  September  18,  1801.  Since  then  memorials  have  also  been 
re(!eiv<Hl  from  the  Milwaukee  Chamber  of  Commerce,  the  <  'hicago  Board 
of  Trade,  the  Detroit  Hoard  of  Trade,  the  Cleveland  Hoard  of  Trade, 
the  Oswego  Board  of  Trade,  the  Kochester  Chand)er  of  Conunerce,  and 
fr<mi  other  associations  and  individuals.  A  copy  of  the  memorial  of 
the  Lake  Carriers' Association  was  transmitted  to  Her  Mnijestjy's  miuia- 
ter  at  thin  capital  October  10,  1801,  with  a  retpiest  for  au(;h  exphuui- 
tion  of  the  facts  in  the  case  as  he  migiit  de.sireto  m;4ve.  The  Depart- 
ment's note  stated  thai  the  nuitter  was  one  of  special  importance  to  oui" 


12 


RECIPROCAL  TRADE  WITH  CANADA. 


people  at  that  season  and  asked  liiiu  to  give  it  his  i-arly  consideration. 
Sir  .Julian  replied,  October  12,  that  he  would  briufj^  the  matter  to  the 
attention  of  his  Government.  At  the  conferencewhicli  was  held  at  this 
Department  in  February  last  with  the  British  minister  and  the  com- 
missioners from  the  Canadian  Government  this  subject  was  presented, 
and  assurance  was  jiiven  by  the  Canadian  comnMssiomn-s  that  the 
complaint  of  this  Government  should  have  ])r(nnpt  consideration,  and 
that  the  question  of  canal  tolls  should  be  satisfactorily  Jidjusted.  Still 
no  replv  has  been  received  to  that  complaint,  but  by  its  order  in  coun- 
cil of  tiie4th  instant  the  Canadian  (iovernment  has  continued  its  system 
of  discrimination. 

It  does  not  relieve  the  position  of  the  D<)minion  GovcrnnuMit  witli 
res|»ect  to  tiu^.  j^rain  rebate,  that  considerable  of  the  •jrain  ca'Tied  to 
Montreal  and  the  east  is  shii>ped  from  ports  of  the  United  States,  and 
that,  the  transportation  of  such  jirain  bein^'  open  to  American  vessels, 
they  can  secui-e  the  rebate  on  tlie  same  conditions  on  wliicli  it  is  given 
to  Cana,<lian  vessels.  The  reciprocal  eciuality  which  is  stipulated  for 
in  the  treaty  in  the  use  of  the  Welland  and  other  Canadian  canals  is 
not  to  the  vessels  of  the  two  countries,  but  to  "  the  citizens  of  the 
United  States"  and  to  "the  inl'abitantsof  the  Dominion."  An  e(iuality 
in  the  use  of  the  cai'als  to  American  vessels  would  not  alom*  satisfy 
the  conditions  of  the  treaty.  Tlu'  distinction  between  the  vessel  and 
the  carg«»  is  recognized  by  the  Canadian  Government,  which  exacts 
distinct  tolls  for  each.  Neither  does  the  treaty  provide  for  ecpiality  in 
tolls  ()nly.  The  conditions  imposed  n])on  the  use  of  the  canals  dis- 
criminate against  American  shi])i)ers  and  consumers,  American  trans- 
l)ortation  c<»mpanies  and  routes,  and  Amencim  ports.  The  i)resent 
practi<'e  of  the  Canadian  Government  is  probably  even  a  greater  dis- 
crimination itgainst  our  citi/ens  than  if  directed  against  our  vessels. 

On  the  Ud  of  February  last  a  communication  was  received  from  the 
Hon.  N.  C.  IJlanchard,  chairman  of  the  Committee  on  Rivers  and  Har- 
bors of  the  House  of  keincsentatives,  in  which  lie  sai<l  that  his  com- 
mittee wojild  ajtpreciate  any  infiuniatiou  as  to 

whctluT  tluTC  in  iiiiyMiii';i  in  rxisfiiiy;  treaties  lietwei'ii  (Ircit  Mriiaiii  and  tii«'  rnitod 
(States  which  wouM  jirevciit  the  itii])i>8iti()ii  of  tolls  l>y  the  I'liitcd  States  mmii  coin- 
miTc  •  (IcMfiiuHl  for  Cauivdian  ports,  tisiiij;,  or  .lioinj;  tlirouifli,  the  St.  Clair  Flats  Ship 
Canal,  or  the  eanal  and  lock  at  th(*  Kanlt  St»^  M;,rie.  in  retaliation  tor  tolls  ini|io8e<l 
at  the  Welland  (anal,  slntnld  the  (Toverunient  (»('  the  Dominion  oC  Canada  tail  to 
recognize  its  ohli;;'ati(Mi  ;;ro\viny;  out  of  the  tweiity-He\'enth  article  of  the  tn^afy  of 
WaBhinn'ton. 

You  rei>Iied  on  the  l.5th  of  Febriuiry  that-- 

the  only  ti  '.'ity  Htipiilation  in  force  uitplicahle  to  the  use  by  American  and  Cainidian 
citizens  of  the  cainils  coiniected  with  the  (Jreat  Lakes  and  the  St.  Lawrenct*  l{iver 
is  contained  in  the  twenty-seventh  article  of  the  treaty  oi  VVashiimton  and  is  clearly 
intended  to  be  reciprocal  iu  character. 

At  the  same  time  yon  said  that  the  i'omplaint  which  was  the  subject 
of  his  letter  ha<l  been 

br<nijj;lit  to  the  attention  of  the  I'atiadian  commissioners  now  (then)  iu  this  city  and 
an  .assurance  ^iven  l)y  them  that  the  co:u]dHitit  whicii  wc  lui\e  preferied  shall  have 
careful  and  prompt  consideralion,  with  a  view  to  a  faithful  observance  of  the  treaty 
Btipnlation. 

It  has  been  repeatedly  urged  upon  this  Department  by  our  citizens 
that  the  action  of  Canada  in  this  matter  ought  to  be  met  by  retaliation 
in  kind.  Its  recent  order  in  council,  continuing  the  discrimination, 
compels  considcraf ion  of  the  wisdom  of  that  course  as  the  only  remedy 
left.     The  spirit  of  the  treaty  imposes  no  other  <«•  different  obligation 


HEOIPKOCAL    TRADE    WITH    CANADA. 


13 


upon  tbis  CrovernimMit  as  regards  Aiuerican  canals  tlian  is  imposed 
upon  t lie  (rovernment  ot"  the  Dominion  as  rej»ards  CaiiadiaJi  canals; 
neither  does  the  strictest  interpretation  of  its  lan<4na>;e,  ex('ei)t  with 
respect  to  the  canal  <.t' the  St.  Clair  Flats.  Coi>ies  of  the  correspond- 
ence are  attaclied  hereto. 
Kespectfnlly  submitted. 

Frank  C.  Partkiixjk, 

ISolicitor, 


Di;rAit'rMi-.\'T  <>i'  State, 

llanhi  uitoii.  Ovtohrr  10,  IS'Jl. 

Sin:  I  have  the  liDiior  to  apprise  yon  "t  tli«  I'l'ct'ipt  <tf  a  meiUDrial  t'roui  the  J.ake 
Carriers'  Association,  of  IJuft'ahi,  N.  \ ..  midtr  date  of  the  ISt'i  ultimo,  in  wliich  they 
complain  of  lUscriniination  bv  tiie  C'aiiadinn  (ioveniment  against  citizens  of  the 
United  Sti'tes  in  the  use  of  the  Welland  Canal  in  contravention  of  article  1^7  of  tlie 
treaty  of  IS7'.  In  view  of  its  statements  1  liave  thonght  it  projier  to  fnrnistryou 
with  a  coj)y,  \vhi<li  I  now  have  the  honor  to  do,  and  reiinest  aneh  explanation  of  the 
facts  in  the  case  as  yon  may  desire  to  nnike. 

As  tlie  matter  is  on*^  of  spe  ' ''    "aportanee  to  onr  people  at  this  season  of  the  year, 
may  I  ask  that  yon  will  kindly  ^        it  your  earlv  consideration. 
I  have  the  honor  to  lie,  with  tlie  highest  consideration,  sir, 
Yonr  most  obedient  servant, 

Wii.i.rAM  1'.  Whahton, 

AcHn(f  Secretary. 
Sir  .Ii  UA.\  rAr.\i:Ki-()Ti:,  G.  (!.  M.  (i.,  K.  ('.  li.,  etc. 


WAsm.MiToN,  October  12,  1S91. 

Sir:  1  have  the  honor  to  acknowledge  the  receipt  of  your  note  of  the  Ifitii  instant 
inclosing  copy  of  a  memorial  from  tiie  Lake  ('arriers' Association,  of  Ihitfalo,  com- 
plaining of  discrimination  l>y  the  Canadian  (Jovernnient  against  citizens  of  the 
United  States  in  the  u.-e  of  the  Welland  I'anal  in  <()ntravention  of  article  27  of  the 
treaty  ;»i  1871,  and  to  inform  you  at  tiie  sanu'  tinn-  that  I  will  bring  this  matter  to 
the  attention  of  my  (Tovernmcnt. 

I  have  the  honor  to  lie,  with  the  highest  consideration,  sir, 
Vonr  most  obedient,  humble  servant, 

JlLlAN   PaI'NCRFOTK. 

Hon.  William  F.  Wharton,  etc 


DKl'ARrMENT   OK    STATK,  * 

WaHhinijtoti,  March  17,  189^. 

Sir:  I  have  the  honor  to  reefer  to  the  discussion  which  took  place  in  the  confer- 
ences lately  held  at  this  Department  bet  wetMi  the  Secretary  of  State,  yourself,  and 
the  Canadian  commissioners  respecting  the  discriminating  tolls  in  the  (Canadian 
canals,  and  to  inclose  herewith  i  cojiy  of  a  letter  from  the  Lake  Carriers  Associ- 
tion,  dattsd  hutfalo,  N.  \ ..  the  llth  instant,  containing  li-.'.urea  showing  the  amounts 
of  the  discrimination  in  i|uestion. 

The  Dejiartnient  will  greatly  appreciate  your  courtesy  in  forwarding  a  cojiy  of 
this  letter  at  once  to  the  Canadian  authorities  for  their  iuforiui-.tion  in  connection 
with  the  promised  satisfactory  adjustment  of  the  (piestion  of  canal  tolls. 

Accept,  Mr.  Minister,  the  assurance  of  my  high  consideration. 

William  F.  Whart<>:v, 

ActitHj  Secretary, 

Sir  Julian  Paunckkotk,  (J.  C.  M.  C.,  K.  C.  ii.,  etc. 


WA.Hins(JT(>N.  March  .'I,  18!).J. 
Sir:   With  I'efercncc  to  your  note  of  the  17th  of  March,  inchising  ii  letter  from  the 
[jake  Cari'iei's'  Association  on   ilic  Nubject  of  discriminating  tolls   in   the  Canadian 
canals.  I  have  the  honor  to  inform  you  that    1   have  transmitteri  a  copy  of  y«)ur  note 
And  o!  its  iiiclosuie  to  the  go\ernor-generaI  of  Canada. 


I  liav(>  th<>  lionor  to  be.  \\ith  'he  highest  consideration,  sir, 
Your  most  oliedit>nt.  Iiumlde  servant. 


H(  A.  W.  F,  Wharton,  etc. 


Julian  Pauncekotk. 


u 


RKCIJ'R*)  'AL    TRADE    WITH    CANADA. 


No.  113.J  C()VSULATK-(}ENKRAI.   OF   TIIK    I'MTKI)    StAIKS, 

Otlaita,  March  ..'S.  ISHl. 

Siu:  I  Lave  the  honcr  to  inclose  a  juinteil  slijt,  taken  from  the  official  gazette* 
issued  to-day,  rixiii<!;  the  tolls  on  wheat  and  otlier  cereals  ])assing  thro>igli  tlu^  Wel- 
land  and  St.  Lawieute  canals  dniing  tlie  season  of  l^i}tl.     It  is  nndcrstood  that  these 
t<dls  aiiplv  as  well  to  .\ineiican  liottonisas  to  others. 
Parliament  will  meet  Ai.ril  2!»,  ISJU. 

I  am,  sir,  your  obedient  servant,  ' 

„       '  "  RiiiiAKi)  (i.  Lay, 

Conaul-Gcneial. 

Hon.  WlI.LIA.M    F.    WllAKTO.N, 

AssiKtavt  Sirrildry  o/  f<late,  IVaslihifjtoii,  I).  (', 


f    I  > 


\ 


.     fOrdiT  in  coiiucil.]        ,  •■ 

At  THK   (JoVKHNMKNT    Hot'SK  AT  OTTAWA, 

■  '  UrdnfudKii,  jnth  (Jnij  of  March,  1891. 

Present:  His  excellency  the  governor-general  in  council. 

His  excellency  having  had  under  consideration  the  tariff  of  ti>lls  on  tiie  canals  of 
the  Dominion,  and  the  several  <u(lers  in  council  undei'  which  a  8])ecial  rate  has  from 
time  to  time  been  cstablisiieil  temi»orarily  on  certain  food  lu'oducts  passing  through 
the  Welland  Canal  and  tlirougli  the  St.  Lawrence  canals  for  shipment  at  Montreal 
and  ports  east  of  Montreal,  is  pleased  to  order,  in  virtneofthei)Ower  vesteil  in  himhy 
chapter  ;i7  of  the  Revised  Statutes,  intituled  ''An  act  resjiecting  tlie  Department  of 
railways  and  canals.''  and  by  and  with  the  advice  of  the  (Queen's  jirivy  council  for 
Canada,  tliat  the  following  anienilments  shall  lie  and  the  same  ai<^  hereby  made  to 
the  tariff  of  tolls  in  force  on  the  said  canals,  viz : 

A  refnnil  shall  be  made  on  the  tolls  collected  on  wheat,  Indian  corn,  jx^ise,  V»arley, 
rye,  and  (if  for  exjjort)  oats  which  may  be  carried  through  the  Welland  Canal  and. 
the  St.  Lawrence  canals  to  Montreal  or  any  port  east  of  Montreal. 

The  reiiind  shall  lie  sncli  as  to  reduce  the  tolls  to  2  cents  per  ton  of  the  said  prod- 
ucts or  a.ny  of  them,  and  the  con<litions  of  such  refund  shall  be  the  following: 

(1)  The  products  aforesaid,  on  which  the  refund  may  be  claimed,  shall  be  shown 
to  have  been  originally  sliipped  for  Montreal  or  some  ))ort  east  of  Montreal  before 
•ntering  the  Welland  Canal,  and 

(2)  Shall  be  shown  to  have  been  actually  carried  to  Montreal  or  some  port  east  of 
Montreal. 

(3)  Transsliipment.if  ata  Canadian  intermediate  port,  shall  not  prevent  the  refund 
aforesaid  being  made. 

This  order  in  council  shall  remain  in  force  only  for  the  present  year,  1891. 

.John  J.  McGek, 
Clerk,  Priry  Council. 


No. 93.]  Dei'artmknt  ok  Sjate, 

JVaxhinnton,  Aprils,  1S91. 

Sir:  The  Department  has  received  the  following  telegram  from Ogdeusbnrg,  N.  Y., 
dated  the  4th  instant : 


Hon.  James  (i.  IJi-unk, 

Secretary  of  State,  Washinijton,  D.  C.  : 

An  order  in  council  ]»as8ed  at  Ottawa,  starch  2~)  ultimo,  reducing  by  refund  canal 
tolls  on  grain  ]>assing  tiirough  Welland  and  St.  Pawrenee  canals  to  Montrciil  to  2 
cents  ]»er  ton  c(  .itains  clause  which,  by  inference,  seems  to  discriminate  against 
transfer  of  grain  of  tliis  class  at  Cuited  States  pcuts. 

Tlie  clause  referred  to  reads  as  follows: 

'•  rransshijtnient.  if  at  a  Canadian  internu'diate  port,  shall  not  ]ucvent  the  reduc- 
tion aforesaid  made." 

If  the  s:ime  refutid  of  toll  is  not  mIIowimI  on  this  class  of  shipments  when  trans- 
ferred from  lake  vessels  to  canal  barges  at  Muited  States  ports,  as  when  transfer  is 
made  as  at  Canadian  p()rts.  it  will  result  in  serious  detriment  of  interests  at  Ogdens- 
burg,  and  United  States  marine  engagtid  in  this  trattic.  Heretofore  the  refund  of 
tolls  has  been  made  regardless  of  whetlier  transfer  was  made  at  (.'anadian  or  United 
States  ports. 

F,  W.   IUi.i>wiN, 
rt  /HiJlX':  Manaiitr  Ogtleiinhmij   Trannil  Conqniny. 


RECU'ROCAL  TRADE  WITH  CANADA. 


15 


I  have  to  iaHtnict  ycm  with  rofeicuc*'  to  tin-  ahovc,  tu  iiive,stijf,it«  fully  Mr.  IVjild- 
win'8  lase  ot  ('oiii;)liiiut  and  to  rejovt  to  tho  l)ci»:iitiuinit  tiien-o:!.  at  your  earliest 
coiivcnii'uce. 

I  am,  sir,  youi'  ohedieut  scrvaut. 

Wii.i.iAM  v.  WiiAitrox, 

AHuinlant  Scrietary.. 
Richard  (i.  Lay,  Esq., 

Conial-General  of  the  United  Siaten,  Oiiuwa. 


<    I  t 


No.  98.]  -  DKi-AirrMKNT  OK  Stati:, 

n'aHlniigtun,  Mai/  14,  1S91. 

Sill:  I  have  to  trauHiiiit  lierewith  inclosed  <'opy  of  two  letters  received  by  the- 
Department  relatiuju;  to  a  inoditication  of  the  rates  of  toll  on  the  Wellaiid  Canal  iiud 
the  St.  Lawrence  canals,  recently  made  by  ;in  order  in  connt  il.  under  whicli  iliscrim- 
iuati(m  is  thought  to  be  made  against  vtissels  transferring  freight  at  American  ports. 
I  have  to  re<[uest  yon  to  report  upon  the  matter, 
I  am,  sir,  your  obedient  servant, 

WlI.I.lAM    F.    WlIAI.'TON, 

Acting  iScrretary.. 
RiCHAHi)  G.  Lay,  Esi]., 

Cunnitl-Gcneral  of  the  rititctt  States,  Ottawa. 


%       t 


"  Measrft.  Penfield,  Lyon  <t'  to.  to  Mr.  lilainc. 

Okfick  ok  1'enkiki.I),  Lyok  «&  Co.,. 

(hwef/o,  X.  r.,  April  24,  1S91\ 

_Sik:  Asking  your  notice  of  an  "  order  in  council"  stated  at  the  iiovernment  house- 
in  Ottawa  March  25,  l><iU,  issued  "by  and  with  the  advice  of  the  Queen's  privy 
council  for  Canada,"  continuing  the  discrimination  against  the  I'nited  States  in  the 
matter  of  tolls  on  grain  carried  eastward  through  the  WeUand  Canal. 

(The  order  directs  the  refund  of  90  per  cent  of  the  tolls  collected  on  all  such  grain 
bound  for  Montreal  or  any  port  east  <if  Montreal,  whether  carried  through  in  one 
bottom  or  transshipped  at  an  intermediate  ])ort.) 

We  desire  to  know  if  such  discrimiuiition  in  favor  <»f  Canadian  and  against  Ameri- 
<'an  ports  anil  bnaim'ss  is  not  !i  \  iolation  of  the  spirit  and  intent  of  the  Treaty  of 
Washington,  while  the  Dominion  of  Canada  enjoys  the  tree  and  unrestricted  use  of 
the  canals  of  the  State  of  New  York,  the  Sault  St.  Marie  Canal,  and  other  canals 
within  the  United  States;  and  if  the  Initt-d  Slates  (iovernment  would  not  be  as 
fully  Justitied  in  the  imposition  of  t(dls  on  all  gr:iin  passing  thrtr.gh  the  Sault  St. 
Marie  Canal,  and  refunding  the  same  to  all  such  graiif  unloaded  in  Cnited  States- 
ports. 

We  .are, 

'-     •  '  '  Pknkikld,  Lyon  &  Co. 


0(jni;xsnri{ii  Tkaxsit  Company, 

(hl(lnixl>ur(f,  \.  v.,  April  4,  ISCn. 

My  Dkau  Siu:  Confirming  my  telegviini  of  to-day,  I  beg  to  call  your  attention  to 
the  following  "order  in  council, "as  published  in  the  Canada  (iazetteof  Mar<h28  nit. 

"At  tiik  GovK.iiNMKxr  lloi  sk.  at  Ottawa, 

"  Wedneffday,  Joth  day  of  March,  IS'Jl. 

"  Present:  His  excellem-y  the  governor-gcaierai  in  corMcil. 

"  His  excellency,  having  had  under  consideration  the  t.iriff  of  tolls  on  the  canals 
of  the  Dominion  and  C.ie  several  orders  in  council  under  whicii  a  sjteciiil  rate  has 
from  time  to  time  been  established  temporarily  on  certain  food  proilncts  passing 
through  the  Welland  Canal  and  through  tln!  St.  Lawrence  canals  for  slii|>iniiit  at 
Montreal  .and  ports  east  cd"  Montreal,  is  ])leased  to  order,  in  virtue  of  the  power 
vested  in  iiim  by  chapter  H7  <d'  the  Revised  Statutes,  entitled '.\u  act  respecting 
the  department  (d"  railways  and  canals,"  and  by  and  with  the  advi(!e  of  tins  Queen's 

Erivy  council  for  Canada,  that  the  following  anwudmcnts  shall  be.  and  the  same  are 
oreby,  imuXv  to  the  tariff  of  tolls  in  force  on  the  said  canali^.  viz: 
"A  refund  shall  be  made  on  the  tolls  collected  on  wheat,  Indian  corn,  pease,  barley, 


16 


REdriiOCAL   TliADK    WITH    CANADA. 


rye,  aud  (if  for  cxjjort)  outs  which  iii.iy  lie  ciinied  tiiroii;;!!  tiio  WiUlaiul  Cuual  and 
the  St.  Liiwrt'iiec  canalu  to  Mimtrcal  or  aii.\  ixnteast  of  Montreal. 

**Tln'  rcfinKJ  shall  ho  such  as  to  rcdiici'  thi'  tolls  to  2  cents  per  ton  of  the  said 
products  or  any  of  them,  and  tlie  (.'onditions  of  such  refund  shall  he  the  followiuj;: 

"1.  Tlie  products  afori4«aid.  (Ui  which  the  refund  may  he  claimed,  shall  he  shown 
to  have  heen  orjirinally  shipped  f  Montreal  or  s«uue  ]>ort  east  of  Montreal  liefore 
€nterinfi'  the  Wfdhind  ('anal;   am. 

"2.  Shall  he  shown  to  have  l)cen  actually  carried  to  Montreal  or  sohw  port  east  of 
Montreal. 

"3.  'I'ransshipmcnt,  if  at  a  Canadian  intermediate  port,  shall  not  prevent  the  re- 
fund aforesaid  being  nuide. 

' 'This  order  in  council  shall  renniiu  in  force  only  for  the  present  year.  IKitl. 

"  J(»IIN   .).  .Mctir.K, 
"C/wA-  VrWy  Council." 


■h 


With  reference  to  this  order,  permit  me  to  explain  that,  on  account  of  the  small 
locks  aad  the  shaUow  water  of  the  St.  liawrence  canals  between  Ogdenshurg  and 
Montreal,  the  much  deeper  draft  vessels  that  brinj;  grain  for  Montreal  from  the 
western  lake  pons  sire  unable  to  go  throuiih  to  Montreal,  and  cousc(|nently  such 
grain  must  by  tr.iusferreu  io  small  light-draft  barges  at  some  poiut  between  the 
Welland  Canal  and  the  lower  St.  Lawieuce  canals. 

lleretolbi-e  this  transfer  has  been  made  ihrongh  lloatiug  elevators  at  Kingston  or 
through  i)erman:nt  elevators  located  at  Ogdensburg,  N.  V.,  which  latter  have  been 
built  with  spe<  ial  reference  to  this  tratfi<'. 

On  account  of  the  belter  facilities  and  other  advantages  ottered  at  Ogdensburg  it 
se omed  ]»robable  that  a  large  portion  of  this  transfer  business  would  i  >  the  future 
be  done  .at  Ogdensburg  instead  of  Kingston.  In  conse(iuence  of  this  pro))ability,  it 
is  known  that  ])aities  intereste<l  iu  having  this  class  of  grain  transferred  at  Kings- 
ton instead  of  Ogdensburg  have  urged  upiui  the  Canadian  Goverumeut  that  the 
''order  in  council'"  providing  lor  the  rebate  of  canal  tolls  on  this  class  of  grain  for 
the  year  1891  be  so  tranied  as  t.)  i>revent  rel'uud  of  tolls  on  grain  transferred  at  Og- 
densburg or  other  Cuited  States  }torts. 

The  exact  meaning  of  the  order  as  issue<l  and  as  <|uoted  herein  is  somewhat  vague 
and  inde'inite,  ami  although  technically  it  does  not  preclude  the  refund  of  tolls  paid 
on  grain  transferriHl  at  I'uited  States  ])otts,  yet  the  etfect  is  the  sanu',  as  grain ship- 
yters  gen(?rally  give  it  that  interpretation  and  Itelieve  that  under  this  "order"  no 
•efund  of  tolls  jtaid  on  grain  transferred  at  United  States  ports  will  be  made,  and 
<'onse((Uutly  will  not  ship  Montreal  graiii  to  be  transferred  at  Ogdensbnrg  so  long 
as  the  (|uestion  of  refunding  the  tolls  is  iu  doubt;  and  this  will  result  to  the  serious 
disadvantage  and  loss  of  large  interests  at  Ogdcuisburg,  and  also  take,  away  from 
many  American  Itoats  running  l)etween  the  upper  lake  ports  and  Ogdensliurg  a 
large  volume  of  business,  which  they  could  secure  if  there  were  no  discrimination 
against  Cuited  States  ])orts  in  tliis  matter. 

It  is  probable  that  it  ])rivate  parties  iuteresteil  were  to  ask  for  more  full  interpre- 
tation of  the  '■  order  in  vfumcil  "  above  re]»orted,  that  consideration  of  such  rciinest 
v^(Mild  be  delayed  until  so  li»te  in  the  season  of  navigation  that  the  result  to  Ameri- 
can interests  would  lie  serious,  even  though  the  tinal  interpretation  should  be  favor- 
able to  transferring  grain  at  American  ports. 

We  take  the  liberty  of  ))ringing  this  matter  to  your  attention,  thinking  that  it  may 
be  considered  of  sutJicient  importance  to. justify  such  action  as  may  result  in  speedy 
knowledge  to  the  American  interests  atl'ected,  as  to  the  actual  meaning  of  the  "  order 
in  council." 

I  am,  etc.,  ,  ;    ■  t    • 

».;  '    F.  W.  Baldwin, 

^  Manager. 

Hon.  Jamkh  C.  lii.AiNi:,  ' 

Secretary  of  Staff ,  i\aHhin<iton,  l>.  C. 


• 


I    i 


Canadian  Canai-  Toi.i.h. 

Report  hjf  Vonniddeiieral  Lay,  of  Ottawa. 

DISCRIMINATION  A(tAINST  TKANiSSIIIl'MKNTS  A  I    AMKKICAN  I'OKTH. 

Iu  comi»liaiicc  with  the  Departmeufs  instructions  of  Ai)ril  S,  1891,  and  May  14, 
18!M,  in  reference  to  tlie  complaiuts  ot'  0';dcnsburg  and  Oswego  shippers  that  the 
order  in  council  of  March  2'),  1!^91,  discrimiu.ites  against  transshipments  at  American 
ports,  excluding  them  from  participating  iu  the  refund  of  tolls  allowed  on  grains 


'A 


• 


RECIPROCAL  TRADE  WITH  CANADA. 


17 


])a88iiif;  tlin)Uj;Ii  th<^  VV^cllaiid  and  St.  Lawrence  canals  to  Montreal  and  points  east 
olthat  city,  I  have  to  report  as  follows:  f 

I  addresHcd  a  letter  of  incinirv  to  the  chief  of  the  canal  dcjiartnicnt  (copy  of  letter 
marked  inclosnre  1),  and  received  reply  (co))y  of  letter  marked  inclosnre  2)  referring 
me  to  the  order  in  council  of  March  25,  1891  (copies  inclosed).  I  was  advised  by  one 
of  the  officials  of  the  department  to  wait  a  while  before  making  my  report,  as  the 
subject  of  tolls  was  then  still  Ix'fore  the  council,  and  th<'  annual  report  was  expected 
to  be  out  very  soon.  I  send  by  mail,  under  sei)arate  cover,  two  copies  of  the  report,, 
which  is  just  out. 

I  also  inclose  copy  of  my  letter  of  May  19,  1891  (marked  inclosnre  8),  to  Sir  John 
Macdonald,  miuister  of  railways  and  ranals,  asking  an  interi>retation  of  the  order  in 
council  of  March  2"),  1891,  and  whether  it  excluded  American  ports  from  the  benefit 
of  the  refund  on  transshipment  at  such  ports.  Having  received  no  reply  to  this  let- 
ter as  yet,  I  have  determined  not  to  delay  my  report  any  lonj^er. 

It  will  be  seen  that  the  i:anal  tolls  are  fixed  at  20  cents  per  tcm,  allowing  a  rel)ate 
of  18  cents  per  ton  on  transshipnu^nt  at  Canadian  ports  only.  Thert;  can  be  no  doubt 
as  to  the  effect  of  this  order,  whatever  the.  intcMition  nniy  have  ltc«^u. 

The  large  size  of  the  boats  from  the  uj)per  lakes  ami  the  small  locks  of  the  canal 
and  shallow  water  below  Ogdcnsburg  necessitate  the  transshipment  of  nearly  all 
grain  destined  for  the  seaboard  by  way  of  the  lakes  and  River  St.  Lawrence. 

The  8U]>erior  facilities  for  landing  grain  at  Oswego  and  Ogdt^nsburfj;,  the  rapidity 
of  its  trans]Mtrtatiou  by  canal  and  rail  to  Montreal  and  New  York,  with  nominal 
freight  rates  at  the  latter  port,  were,  no  doubt,  the  causes  which  led  to  the  discrimi- 
nation in  favor  of  the  c'anadian  ront<\ 

I  am  infurned  by  the  eonsul  at  Kingston,  Ontario,  that  the  transshipment  of  grain 
there  is  the  largest  business  tlone,  and  that  last  year  about  one-seventh  of  the  busi- 
ness was  directed  to  Ogdcnsburg,  American  railroads,  in  a  measure,  taking  the  place 
of  the  ('ana<lian  canals. 

There  is  no  doubt  now  that  grain  trans-shipped  at  an  An^-irican  port  will  cost  18 
cents  |»er  ton  canal  tolls  more  than  if  transship]»ed  at  a  Canadian  port. 

I  have  extracted  from  the  report  of  railways  and  ca-^als  for  1891  some  statistics 
portaining  to  the  subject,  and  attach  them  hereto. 

Richard  G.  Lay, 

Consul-deneral. 

Uniteu  State.s  Consulatk-Gknekal, 

Ottawa,  May  28,  1891.  ' 


>  .  I  luflosuro  I  in  Consul-Gi'iicial  Lay's  report.] 

Consul-General  Lay  to  lion.  M,  Jioirell,  Afinistcr  of  ('iixtomn. 

Coxsulatk-Gkxekal  or  tjik  United  States. 

Ottawa,  April  14,  1891. 
Dear  Sir  :  I  have  the  honor  to  request  to  be  informed  if  the  rebate  <m  grain  freight 
passing  through  the  Wclland  and  St.  Lawrence  canals,  authorized  by  order  in  coun- 
cil passed  March  2.5.  1891,  will  be  allowed  on  transshipments  at   I'uited  States  ports 
as  at  Canadian  ports. 
1  am  etc., 

Richard  G.  Lay. 
i      '  Consul-Oenvral. 


■    -     *  (Inclosnre  2  in  Uonsul-lieuerrtl  Lay's  report.] 

The  Secretary  of  BailwuyH  and  Canals  to  Conaul-General  Lay. 


Sir:  In  acknowl.  dging  your 


Department  of  Railways  and  Canals, 

Ottawa,  April  21,   18!H. 
letter  of  the  llth  instant,  tr.insferred  fr<,m  the  d<i- 


SIR:  in  acKnoWL-Uginj;  your  iei.iei  oi  luc  iiiu  iumi,iiim,,  i,iiiusit)rnMi  ik.iu  in«;  (Ui- 
partment  of  customs,  relatinji  to  rebate  on  grain  freight  passing  through  the  W«'l- 
land  and  St.  Lawrence  canals  authorized  by  order  in  ccmcil  dated  March  2.5,1891, 
and  asking  whether  it  be  allowed  mi  transshi]Huents  at  United  States  ports  as  at 
Canadian  ports,  I  am.  in  reply  thereto,  diroi  ted  to  forward  you  the  accomi)anying 
copy  of  the  said  order  in  coumil  above  referred  to. 
I  have,  etc., 

A.  P.  Bradley, 

Seorttary. 
S.  Ex.  114 2 


!■■■ 


18 


Kl.riPROCAL    TRADE    WITH    CANADA. 


(Onlrr  in  coiincil.) 
%  ftOVKRNMKNT    Hoi'SK, 

Ottnini,  jyediKxdaii,  Munh  25,  ISHl. 

Prebtiit,  liiis  excfllciic.v'the  ;i(>\ crndi-^iciu'iiil  in  coimcil. 

HiH  t^xctilloncy,  liitviiijj  luiii  iiinler  consideration  tin)  taiitVof  tolls  on  t!i«  ciinuls  of 
the  Dominion  ami  Iho  s(>\eral  ordeiH  in  conncil  iind-T  which  a  sjn'cial  rate  inift,  I'roni 
time  to  time,  been  cHtiihlished  tfinporariiy  on  certain  food  itrodnctw  luissin;;  through 
the  Welhind  Canal  and  rliron;j;h  the  St.  Lawrence  canals  lor  slii|(ment  at  Montreal 
and  |»ort8  eant  ot  Montreal,  is  ph-ased  to  order,  in  v'rtne  oftlie  jiowers  vested  in  him 
by  eliapter^Tof  the  revised  statnte.s,  intilnled  "An  ;ict  res])eetinj;-  the  dei)artinent  of 
railways  ami  canals,  "  and  hy  and  with  tlie  ad\  ice  of  the  </neen'h  ])rivy  eonncil  for 
Canaila,  that  the  followin;^  amendments  shall  Im;,  and  the  same  are  liereliy,  made  to 
the  tarirt'of  tolls  iu  t'orce  on  the  said  canals,  \iy. : 

A  refund  shall  he  made  on  the  tolls  collected  on  whcit.  Indi.ui  corn,  pease,  barley, 
rye,  an<l  (if  for  exjtort )  oats  which  may  be  carried  throuj^h  the  W'elland  Canal  aiul 
the  St.  i^awrem-e  canals  to  Montreal  or  any  port  eaKt  of  Montreal. 

'J'he  refund  shall  be  such  as  to  reduce  the  tolls  to  2  '  ents  ])erton  of  the  said  prod- 
nets  or  any  of  them,  and  the  conditions  of  such  refinnl  shall  he  the  followinjj;: 

(1)  The  jtroducts  aforesaid,  on  which  the  refund  may  h<^  claimed,  shall  lie  shown  to 
have  been  originally  shipped  for  Montreal  or  some  i>ort  east  of  Montreal  before  en- 
tering the  Welland  Canal;  and 

(2)  Shall  be  shown  to  have  been  actually  carried  to  Montreal  or  some  ])ort  east  of 
Montreal. 

(3)  Trausshiiunent,  if  at  a  Canadian  iuterraediate  i>ort,  shall  not  prevent  the  refund 
aforesaid  being  made. 

This  order  in  council  shall  remain  in  force  only  for  the  i)resent  year,  1891.  ^ 

John  J.  McGkk, 
clerk  of  the  rriri/  Council. 


revenue  from  canals. 

Department  of  Railways  and  Canals, 

Ottawa,  March  31,  1S91. 
In  carrying  t)ut  the  provisions  of  the  foregoing  order  in  council,  the  collector  of 
canal  tolls  at  Port  Colborue,  \Vellan<l  Canal,  will  collect  the  full  rate  of  tolls  and 
issue  an  official  voucher  therefor;  the  reduction  will  be  i»aiil  by  the  department  as  a 
refund  upon  evidence  being  furnished  by  the  shipj)ers  that  the  conditions  of  tx*. 
order  in  council  have  been  complied  Avith. 

The  vouchers,  properly  indorsed,  must  iu  all  cases  accompany  the  application  for 
a  refund  of  the  tolls  referred  to. 

B.  H.  Teakles, 
Chief  Clerk,  Canals  Revenue, 


DEFINING  the   ORDER  IN    COUNCIL, 


s 


ul 


Government  House, 
Ottawa,  Wednesday,  April  29,  1891. 

Prose. t,  his  excellency  the  governor-general  in  council. 

His  bxcellency,  under  the  autlu.-'ty  ('onferred  )i))on  him  by  chajiter  37  of  the 
revised  statutes,  intituled  "An  act  respecting  th(>  department  of  railways  and 
canals,"  au<l  by  and  with  the  advice  of  the  Queen's  privy  council  for  Canada,  is 
pleased  to  order  that  the  provisions  of  the  order  in  council  of  the  25th  day  of  March, 
1891,  authorizing  the  reduction  of  toll  to  two  cents  (2  cents)  per  ton  for  the  passage 
through  the  Welland  and  St.  Lawrence  canals  of  certain  agricultural  products  there- 
in uanu'd  shall  be  understood  to  apply  to  any  portions  of  such  cargoes  lightered  at 
Port  Colborne  and  reshij)ped  at  Port  Dalhousie,  and  also  that  the  provisions  of  the 
aaid  order  be  made  api)licable  to  the  therein  named  products  when  shipped  from 
Canadian  Lake  Ontario  ports. 

John  J.  McGee, 
Clerk  of  the  Privy  Council.  ' 


RECIPROCAL    'IKADK    WITH    CANADA. 


19 


RKDUCTION   «)i'   nANAI,  T(>I.r,8. 

Certified  ((ipy  of  a  report  of  ii  coiiiiiiitt(M>  of  tin-  liononihlo  the  privy  coiincil, 
approved  l)\  his  fXfelh'iicy  the  goveriior-jicncral  in  cohikII  oh  tlir  iSth  of  May,  1891. 

The  coimuittet'.  on  re<'oiiimt'U(l,ition  of  tiio  iniiiiMter  of  riiihviiy.s  iind  canals,  advise, 
with  roferenee  to  tiie  orders  in  ronncil  ilattKl,  respiM-tively,  the  '2TAh  of  March  aud 
the  2{>tli  of  April  last,  anthorizinj;  the  reduction  of  canal  toils  on  certain  food  prod- 
ucts, the  provisions  of  Nviiicii  orders  aie  ciinied  ont  l>y  way  of  refund  of  the  excess 
of  toUa  paid,  that  such  refnnd  l»e,  made  after  the  (doae  of  tim  jiresent  season,  on  or 
abont  the  1st  day  of  |)ecenil)er,  ami  not  ilnrini;;  the  season,  as  heriitofore, 

John  .J.  Mc'(«kk, 
(lirk  of  tlKl'tlvji  t'oiineU. 


*  I  Iiicldsiiic  :i  ill  ('(iiisul-i  ri'Mc'iiil  I-iiy's  rt'poit.l  • 
CiniMul-Gciirral  Luif  in  Sir  •/nhii  Mavdoniild. 

*  UNITKD   STATKS   CoNSlLATr.-GKN'ERAr, 

otttiicd,  Mail  19,  1891. 

Sik:  Application  has  liecn  made  to  the  Department  of  State  at  Washingttin  to  know 
whether  tlie  order  in  coniudl  of  March  25,  18!)1,  in  refeience  to  rebate  on  canal  tolls 
precludes  transshipments  made  at  laiited  States  ports  from  the  bcnetit  of  such  refuiid. 
It  is  understood  that  shippers  of  grain  by  the  lakt^s  and  W'elland  aud  St.  Lawrence 
canals  construe  the  order  in  council  as  exclndinj;  the  refund  to  all  sue  h  transship- 
ments. 

I  am  instructed  by  the  Department  to  report  on  this  subjetrt,  and  I  have  the  honor 
to  request  to  be  informed  liy  you  of  the  proiier  interpretation  id' said  order  as  a)»])ly- 
ing  to  Unitetl  States  ports. 

I  am,  etc.,  -^ 

^,,,,  J  '  RiciiAKi)  (J.  Lay, 

^  ('onxul-deneral. 


[Inclosnre  4  in  Consul-General  Lay's  reiMirt.--Krimi  the  otticial  report  of  1891.] 
HU81NK8S   AN1>   RBVKNTE   OK   CANADIAN   CANALS. 


•«{ 


The  total  revenue  from  canal  tolls  for  the  season  of  1890  was  $348,059,  compared 
with  $381,109  the  previous  year,  an  aitjiarent  decrease  of  $33,049,  but  an  actual  de- 
crease, taking  an  account  of  rebates,  id"  $25,959.4(i. 

Of  the  24r>,932  tons  of  grain  which  passed  through  the  Welland  Canal  to  Tnited 
States  jiorts  16,4.33  tons  were  transshipi>ed  at  Ogdensburg  and  passed  down  the  St. 
Lawrence  to  Montreal. 

As  this  was  a  new  departure  in  the  transshipment  of  grain  for  Montreal,  and  not 
anticipated  at  the  time  of  passing  the  order  for  the  reduction  of  tolls  on  grain,  it  was 
not  ccmsidered  that  the  transshipment  of  grain  at  a  lJnit<id  States  port  came  under 
the  order  in  council  of  I"'«d)ruary  27,  1890.  Upon  the  urgent  request  of  the  forward- 
ers and  others,  his  exc<dlency  in  council,  on  the  22d  of  November,  1890,  passed  an 
order  in  council  authorizing  a  refund  of  tolls  paid  on  the  Wellaiul  ami  St.  Lawrence 
canals  above  2  cents  a  ton  on  the  (|uantity  of  grain  so  transshipped  at  Ogdensburg 
for  Montreal.  The  rebate  on  the  former  ainounte<l  to  $2,9r)7.94  and  on  the  latter  to 
$232.04. 

The  (juantity  of  grain  passed  down  the  Widland  Canal  from  (Tnited  States  ports  to 
United  States  jiorts  has  steadilv  increased  each  vear,  from  47.029  tons  in  1880  to 
245,932  tons  in  1890,  an  iuiM-caseof  198,903  tons. 

The  iiuantity  that  reached  Montreal  thrv)ugh  these  canals  for  1890  was 228,5 13  tons, 
compared  with  21)7,769  tons  in  1889  and  333,806  t(ms  in  ISHO,  showing  a  decrease  for 
1890  from  1889  of  39,256  tons  and  from  1880  of  105,293  tons. 

•  The  ""ilways  have  become  great  competitors  with  the  canals  for  the  through  grain 
trade.  Hiile  the  through  grain  traffic  on  the  canals  is  declinii\g.  the  quantity  car- 
ried easi,,/ard  by  rail  is  yearly  increasing  both  in  Canada  and  the  United  States. 

The  canal  grain  trade  decreased  11.92  per  cent  in  Canada  last  year  an<l  8.94  per 
cent  in  the  United  States,  while  the  increase  in  the  quantity  of  grain  carried  by  rail 
was  25.55  per  cent  in  Canada  and  22.72  per  cent  in  tlie  United  States. 


II 


•JO 


RKCU'ROCAL    TKADK    Will!    CANADA. 


Tlio  (iiiiiiitity  of  hiirlt'v.  •••nii,  <>  its,  jieusc,  rye,  ami  wlt'jif  ;uiivi'il  at  Mcnitn-al  via 
the  (iraiid  Tniiik  ;iinl  ("aiiadi.iii  I'atilic  railways  for  a  iierioil  (tf  nine  yearn  is  reported 
as  I'olldsvs: 


Year. 


i  (Quantity. 


18H2 
lH8;t 
1884 
188.5 
ISSO 


Ton*. 

75, 02« 

UK,  1172 

142.  2:11 

160.  H21 

lt>,j.  oi;i 


Ymv. 


1887 

188H 

1880 

1800 ^. 


i;iiHiitity. 


Toim. 

101,760 

11:1, 704 

04.  04.3 

110,208 


Tlie  (juantity  of  the  same  artirlcs  passed  down  tlie  wliole  leiifjth  of  tlie  St.  liawrence 
cauala  to  Montreal  lor  the  same  period  was  an  follows:  * 


Year, 

(Quantity. 

Year. 

'    '"      ^ 

naiitity. 

1882 

l(<8;t 

Toti*. 

2:10,  ().". 

-Mi  'Mix 

1887 

IHfIX 

t 
1 

1 

Ton». 

2:17,  881 
IfiO.  191 

1884 

174.400 

1880 

275.414 

1885 

i:i4  X24 

1800 

1 

242,  .J7 1 

1880 

272,  i:w 

I 

The  qnantitv  of  grain  jjassed  down  the  whole  length  of  the  St.  Ijawrenee  eanals  to 
Montreal  is  as  follows:  1K89,  275,114  tons ;  1890,242,571  ton.s;  deereas<-,  82,848  tons. 

The  qnaiitity  of  yrain  to  Montreal  via  the  Canadian  Paeitic  and  (irandTrnnk  rail- 
ways is  reported  as  fellows:   188tt,!)4. 943  tons;   1890,  119,208tons;  iiierea8e,24.2t)5tons. 

The  qnantitv  of  ijrain  to  tidewater  l>v  New  York  canals  is  reported  as  follows: 
1889,  1,242,804  tons;   189(.),  1,181,289  tons;  ■(leeivase,  111,615  tons. 

The  qnantitv  of  nrain  earried  to  tide  water  by  the  New  York  railways  is  re])orted 
as  follows:  1889,  2.481,501  tons;  1890,  8,045,302  tons;  increase,  5(>3,801  tons. 

The  increase  and  decrease  for  1890,  as  conipareil  witii  1889,  on  the  several  routes 
competing  for  the  carrying  trade  to  the  seal'  lard  are  as  follows: 


Routes. 


Quantity. 


Porce:*age. 


Increase.  Deci'ease.  Increase,  i  Decrease. 


T(ms.     I     Twit. 

■St.  Lawrence  lanals ' I      ;t2, 843, 

Oannilian  r.'iclHc  anil  Grand  Trunk  railways 24.265  ' 

New  York  caniilH .' Ill,  615 

New  York  railways I    56:^,801  j 


Per  cent. 


25.55 
'22.72 


Per  cent. 
11.92 


8.94 


•  -..J  TKAViSHIl'MENT   OK   GRAIN. 

Two  Canadian  vessels  took  their  cargoes  of  l.OHl  tons  of  grain  tlirongh  to  Mon- 
treal intact  in  188'<,  against  1  witii  42.")  tons  in  1889,  and  8  with  1,281  tons  in  1890;  39 
Canadian  vessels  lightered  their  cargoes  at  Kingston  in  1888,  against  51  in  1889  and 
63  in  1890;  201  vessels  di,scharged  the  whole  of  their  cargoes  at  Kingston  in  1888, 
against  267  in  1889  and  172  in  1890,  'i'he  <[nantity  of  grain  transshipi»ed  at  Port  Col- 
borne  in  1890  and  the  three  previons  years  is  giten  below.  The  total  nninber  of 
grain-laden  vessels  lightered  at  the  port  in  1890  was  83,  against  47  in  the  previons 
year.     Three  vessels  entered  the  can;!  without  nnloiiding  in  188!t,  but  none  in  1890. 

The  <iiiantity  of  grain  lightered  was  as  follows: 


(rriiin. 

1887. 

BunheU. 

8a.  850 

203,277 

1888. 

lixiHhels. 

11,440 

13;t,  014 

1889. 

1890. 

* 

Wheal 

HimheU. 

:j7.  222 

254;  690 

8,218 

livsheU. 
4  :no 

Com 

7711  087 

Oats 

44  294 

*        * 


« 


RFX'IPROCAT.    TRADK    WITH    CANADA. 


21 


> 


The  quantity  of  utii'm  paHHod  down  the  Wt^llaiiil  Canal  in  Canadian  and  United 
States  vohhpIs  to  Kin)r8ton  for  tive  years  is  an  follo\vn:  ^ 


Year. 


CanucUan  vogRnls.   ;  XTnitrd  StatitM  vc<«hoU. 

Tons. 


1886 
1887 
1888 
1889 
180U 


No. 

Tons. 

No. 

244 

143,330 

»7 

284 

178, 233 

19 

182 

I4:i,026 

tw 

'JOH 

166,117 

114  i 

203 

184, 275 

35  ( 

i 

62,222 

12,477 

43,  667 

1U8,  358 

35,  560 


The  ((uantity  n)  grain  discharRodin  this  port  from  vpssols  which  did  not  enter  the 
canal  wa.s  as  follows: 


Grain.                                                                    1888. 

1889. 

Jluthelii. 
Wheat 72,  592 

liusheU. 

8  eo8 

Com 23, 675 

Notwithstandinj;  the  <'nlarff«'ment  of  the  Wolland  Can.il,  the  uumber  of  vessols 
having  to  lightt-r  a  }»ortion  of  their  (•argoes  from  4:")  to  80  tons  eiich  has  reached  83, 
the  highest  numlier  for  any  year  sinee  1880.  Of  these,  81  were  I'uited  States  steam 
vessels  and  2  I'nited  States  sailiuji  vessels. 


Mr.  Lay  to  Mr.  'Vharton. 


No.  124.] 


CONSIILATK   OF  THK   IGNITED  STATKS, 
Ottawa,  .June  12,  1892.     (Received  June  17.) 
Sir:  I  have  the  honor  to  inclose  herewith  three  coi>i45s  of  a  re]>ort  of  a  committee 
of  the  privy  council  approved  May  18,  1891,  tixinjif  the  time  for  jjiiying  the  refund  ou 
canal  tolls  at  the  end  of  the  season,  on  or  al)out  Decemher  1,  1891. 

1  beg  to  refer  the  Dei)artment  to  instruction  No.  93,  of  April  8,  No.  98,  of  May 
14,  and  to  my  dispatch  No.  122,  of  May  28,  1891,  on  this  subject. 
I  am,  etc., 

RicHARH  G.  Lay, 

Coiiaul-detieral. 


[Inclosure  in  Mr.  Lay's  No.  124.] 

Certified  coiji/  of  a  report  of  a  committee  of  the  honorable  the  prh'n  council,  approved  by 
hin  exoeltency  the  governor-yeneral  in  council,  on  the  ISth  May,  ISUl. 

The  committee,  on  the  recommendation  ot  the  minister  of  railways  ami  canals, 
advise,  with  reference  to  the  orders  in  council  dated,  respectively,  the  25tli  of  March 
and  the  29th  of  April  last,  autborixing  the  reduction  of  cauijl  tolls  on  certain  food 
products,  the  pi-ovisions  of  which  orders  are  carrie<l  out  by  way  of  refund  of  the 
excess  tolls  paid,  that  such  refund  be  made  after  the  close  ni  the  i)re8ent  season,  on 
or  about  the  1st  day  of  December,  and  U(»t  during  the  season,  as  heretofore. 

,         ,  John  J.  Mc'^'EB, 

—  ■  -.-  -   -  .    Cidrk  of  the  J'riry  CoiiHcil. 


Mr.  Lay  to  Mr.  fVharton.       ^ 

No.  173.]  Consilatk-Gknehal  ok  the  United  States, 

Ottawa,  April  7,  1S92.     (Received  April  12.) 

Sir:  I  have  the  honor  to  inclose  herein  two  (opiesof  an  order  in  council  passed 
April  4,  1892,  amending  '"An  act  respecting  railways  and  canals"  in  relation  to 
Canadian  canal  tolls  for  1892  on  wheat,  Indian  corn,  pease,  barley,  rye,  oats,  daxseed. 


22 


RECIPROCAL    TRADE    WITH    CANADA. 


I; 

III: 


ai)d  biKkwlieat  that  ])a88e.s  through  tlio  Wfllauil  Canal  ami  tl'e  St.  Lawrence  canals 
to  Montreal  or  to  any  port  east  of  Montreal. 

I  hv)^  to  icfor  tile  Departiiusnt  to  my  disi)atch  on  this  snbj<Mt,  No.  122,  of  May  28, 
1891,  which  applii'M  a.s  well  to  this  year  as  last. 

It  will  be  seen  that  the  tolls  remain  the  same  as  last  season,  namely,  20  cents  per 
ton,  and  the  rebate  18  rents  jier  ton.  This  reliate  or  refund  reduces  the  tolls  t()  2 
cents  jicr  ton  on  the  products  above  named,  provided  they  are  shown  to  be  orininally 
shipped  for  Montreal  or  for  sonif  other  port  east  of  Montreal  and  shall  be  shown  to 
have  been  carried  to  Montrtial  or  to  .some  i)ort  east  of  Montreal  and  actually  sent  out 
of  the  coautry;  that  tli"  right  to  this  reb.ate  shall  not  be  lost  by  re.ason  of  immediate 
transshipment,  ]trovid<'d  that  the  ]dace  of  transshi])nu'nt  is  one  within  the  Dominion 
of  C^anada;  that  the  right  to  the  rebate  shall  extend  to  any  portions  of  cargoes  light- 
ered at  Port  Colborne  and  reshipped  at  Pcut  Dalhousie,  aud  also  to  shii)ments  of  the 
above-named  ]>roducts  made  irom  any  Canadian  Lakt^  Ontario  port;  that  the  pay- 
ment of  the  amount  to  be  relundcd  will  be  m.'ide  from  time  to  time  as  the  cargoes 
of  the  said  ])rodu.ts  are  dispatched  for  export  from  Montreal  (^r  from  some  port 
eafit  of  Montreal.     This  order  to  remain  in  force  for  the  year  1892  only. 

I  also  ;  lose,  as  a  matter  of  interest  in  this  connection,  an  extract  from  o5liciaI 
sources  oi  the  (^a)iacity  of  Ciinadiau  canals  along  the  St.  Lawrence  i{iver,  viz,  the 
maximum  Ungth,  width,  and  draft  of  vessels  which  these  canals  m  ill  pass,  and  also 
the  average  time  it  takes  for  vessels  to  pass  to  and  from  Chicago  through  these 
canals. 

I  am,  etc., 

'      Richard  G.  Lay, 

Contul-tltmeyal. 


I 


Iliicliisiiie  1  ill  Xo.  17:i.    From  the  Canada  Gazett*.] 

Order  ill  Council  of  April  4,  1S92,  ' 

At  tiik  (i<>\  I  kn.mknt  fioi'si;  at  Ottawa, 

MoikIui/,  the  ith  diiji  of  April,  1802, 

Present:  His  excellency  the  go\ ernor-geueral  in  council. 

Hie  excellency  having  bad  under  consideration  the  tarilf  of  tolls  on  the  (  aup's  of 
the  I>(uninion  and  the  several  orders  in  council  uiuler  which  a  special  rate  has  from 
tim"  to  tinu'  been  established  temporarily,  on  certain  food  products  passing  through 
the  Wellaml  Canal  and  tiirougli  the  St.  Lawreuee  canals  for  shipn;ent  at  Mont.'eid 
and  ports  east  of  Montreal,  is  pleased  to  order,  in  virtue  of  the  powi^rs  vested  in  him 
by  chai>ter  'M  of  the  revised  statutes,  intituled  "An  act  res])ecting  the  department 
of  railwavs  and  canals,"  and  l»y  ami  with  the  advice  of  the  (Queen's  privy  council 
for  Canada,  that  the  i'oUov.ing  amendments  shall  l»e,  .md  the  same  are  liereby,  nuide 
to  the  tarilf  (d"  tolls  in  force  on  the  said  <'anals.  viz: 

That  a  refund  be  made  of  a  jxtrtion  <d'  tin'  canal  tolls  colh'cted  on  whea",  Indian 
corn,  pease,  Itarley,  rye,  oats,  tiaxseed,  ami  Imckwheat,  which  have  been  carried 
through  the  Wclland  Canal  and  the  St.  Lawrence  canals  to  .Montreal  or  to  any  port 
east  (d'  Montreal,  in  all  ases  where  the  said  products  so  carried  are  exj^orted,  and 
in  Huch  cases  only. 

That  this  rebate  lie  such  as  to  reduce  the  tolls  to  2  cents  per  ton  of  the  said  prod- 
ucts or  any  of  them,  and  that  the  cf»nditions  (d'  hiicIi  refi  id  he  the  following: 

rhat  the  jiroflncts  albresaid  on  which  the  rebate  of  tolls  may  be  claimed  "hall  be 
shown  to  ha\e  been  originally  shipped  for  Montreal  or  for  souu*  other  port  east  of 
Montreal,  and  shal!  be  shown  to  have  been  carried  to  Montreal  or  to  soim'  jiort  east 
of  Montreal  ami  actually  s.'ut  out  of  the  cotintry. 

That  the  right  to  this  rebate  shall  not  be  lost  by  reason  of  intermediate  trausship- 
niei.t,  provided  that  the  place  of  such  transshipment  is  one  within  the  Douuniou  of 
Canada. 

■{'hat  the  right  to  this  rebate  shall  extend  to  any  p<ution  of  cargoes  lightered  at 
I'ort  Colborne  and  reshipjied  at  Port  Dalhousie,  and  also  to  shipments  of  the  above- 
named  products  made  from  any  Canadian  Lake  Ontario  jiort. 

That  jiayment  of  the  amount  to  be  refumled  be  uuide  from  time  to  titne  as  cargoen 
of  the  said  products  are  dispatc  hed  for  export  from  .Montreal  or  from  souic  jiort  east 
of  Montreal. 

That  this  order  in  council  remain  in  force  for  the  present  year  (1892)  only. 

John  .L  McJiKk, 
Vifrk  I'riry  Conncu. 


RECIPROCAL   TRADE    WITH    CANADA. 


23 


[Inclosnre  2  in  ITo.  173.] 
Order  in  council  of  March  25,  1891. 

At   the   fioVKRXMKXT   HOCSK   AT   OTTAWA, 

WcdncHdiui,  the  J.'iih  daij  of  March,  1S9L 

Present:  Mis  cvccllciicy  the  <io\ernor->i;eiieral  in  couni'il. 

His  excellency,  liavinj;  liiid  under  consideration  the  tariH'  of  tolls  on  the  canals  of 
the  Dominion  and  the  several  orders  in  council  under  which  a  special  rati'  has  from 
time  to  time  iieeu  estihlislied  temjtorarily  on  certain  food  j)ro(Uicts  passinfi-  thronph 
the  W<dlaiid  Canal  :ind  through  the  .St.  Lawre'ice  canals  IVir  shi))nu'nt  at  Montreal 
and  ports  east  of  Montreal,  is  jdeased  to  ord<;r,  in  virtue  of  the  po\verH  vested  in  him 
by  chapter  1^7  of  the  rcnised  statutes,  entitled  "An  act  respecting  the  department  o 
railways  and  canals.''  and  hy  ani'  with  the  advice  of  the  Queen's  privy  council  for 
Canada,  that  the  following  anuniduients  shall  be,  aiul  tiu?  sauu^  ariJ  herehy,  made  to 
the  tar  itf  of  tolls  in  forie  on  the  said  canals,  viz: 

A  refund  shall  l)e  made  on  the  tolls  eollec^ted  on  wheat.  Indian  corn,  pease,  barley, 
rye,  and  (if  for  expmt)  oats  which  m.iy  Ije  carried  through  the  Welli;n<l  <'anal  and 
the  St.  Lawrence  canals  to  Miuitreal  or  any  i)orteasT  of  Montreal. 

The  refund  shall  be  sucli  as  to  reduce  the  tolls  to  2  cents  per  ton  of  the  said  pro<luct8, 
or  any  of  them,  and  tlie  conditions  of  sucli  refund  shall  be  the  tbllowing: 

(1)  The  products  afores  lid  un  wiiich  the  refund  maybe  claimed  shall  be  showu 
to  have  been  originally  siiip)»ed  for  Montreal  or  some  port  east  of  Montreal  before 
entering  the  Welland  (!anal;  and 

(2)  Sh  ill  be  shown  to  have  been  actually  carried  to  Montreal  <n'  some  port  east 
of  Montreal. 

('.i)  Transshipment,  if  at  the  Canadian  intermediate  port,  shall  not  prevent  the 
refund  al'oicsaid  being  made. 

This  order  in  council  sliall  remain  in  force  only  for  the  present  year,  1891. 

.John  J.  Mc(ii;K, 
,     ,  7;  Chrk  I'riv}!  Council. 

In  currying  out  the  provisiims  of  the  foregoing  order  in  couu<*il,  the  coUector  of 
canal  tolls  at  Port  ("olborne.  Widland  Canal,  will  collect  the  full  rate  of  tolls  and 
issue  an  otliciaj  vomdnT  therefor:  the  reduction  will  lie  jiaiil  by  tlie  di^partment  as  a 
refund  upon  evidence  being  fiirnishsMl  Ity  tiie  shippers  that  the  conditions  of  the 
order  in  council  have  been  complied  with. 

The  vouchers,  projierly  indorsed,  must  in  all  cases  accompany  the  application  for 
a  refund  of  the  t<ills  nfeircl  to. 

H.  H.  Tkaki.ks, 
Chief  Clerk,  i'unulx  Rerenue. 
Dki'autmkxt  tiK  Railways  AND  Canals, 

(iHauii,  March  31,  1S9L 


[Inclosnre  ;i  in  No.  173.] 

Order  in  vonncil  of  April  -29,  1S91. 

At  thk  (iovkunmknt  Horsi-;  Ar  Ottawa, 

fl'edncuday.  the  HOIh  dnij  of  April.  lS9t. 

Present:   His  excellency  the  governor-general  in  council, 

His  excellency,  under  the  authority  conferred  \\\u\\\  him  by  chapter  I!7  of  the 
revised  statiiteseutitled  ".\u  act  respeciing  the  department  of  railways  and  <  analH," 
and  bv  and  with  tiie  advice  ot  the  Queen's  privy  (!ouni'il  for  Canada,  is  jileased  to 
order  that  the  provieimis  of  the  order  in  council  of  the  2.">th  day  of  March,  IHOl,  au- 
thorizing the  reduction  <d'  tcdl  to  2  cents  per  ton  for  the  jiassage  through  the  Weliaiul 
and  St.  Lawrence  canals  of  certain  agricultural  i>roduc's  therein  iiiimed,  shall  be 
unrtemtood  to  apjdy  to  any  portions  of  such  cargoes  lighttv,;".!  at  INut  Colborne  and 
reshipped  at  i'ort  Dalhousie,  an  I  also  that  the  provisions  (  f  the  s.iid  order  he  made 
applicable  to  the  th'  eiu-named  products  when  siiippcd  from  Cuna<iian  Lake  Ontario 
ports. 

.loi.N  .1.  McOk.k, 
CUfk  I'rivjf  Council. 


24 


RECIPROCAL   Tl?x\DE    WITH    CANADA. 


[Inclosiire  4  in  No.  173.] 

Ccrtijivd  c<)j>ii  of  a  report  of  a  committee  of  the  honorable  the  prirj/  eoiniciL  approred  by  his 
ej-celiencji  llie  gorcrttor-gvneral  in  council,  on  the  18th  of  May,  1S91. 

Tlie  coiiimitttio,  on  the  recouimendation  of  the  iniiiister  of  railways  and  canals,  ad- 
vise with  reference  to  the  orders  in  conmil  dated,  respectively,  tlie  25th  of  March  and 
thi'  29th  of  A])ril  last,  authorizinji;  the  reduction  of  canal  tolls  on  certain  food  prod- 
ubts,  the  ])rovi8ions  of  whi<li  orders  are  <'arried  out  hy  way  of  refund  of  the  excess 
tolls  paid,  that  such  refund  be  made!  after  the  close  of  the  present  season,  on  or  about 


the  Ist  day  of  Deteuiber,  and  not  during  the  season, 


:is  heretofore. 

John  J.  McGkk, 
Cltrk  of  the  Priry  CouhcU. 


I  ■< :  'V 


•I 

i' 


.    -  [Indosnre  5  in  No.  173.] 

St.  Lawrence  Canals. — Dimensions  of  lock,  200  feet  b^y  4.5  feet;  depth  of  water  on 
sills,  y  feet. 

Welland  Canal. — Dimensions  of  L)ck,  270  feet  by  4.t  feet;  depth  <»f  water  on  sills, 
14  feet. 

The  St.  Lawrence  canals  between  Mi>ntreal  and  Lake  Ontario  are  in   process  of 

>ntreal 
igo  to 


beinjj,  enlarjjed  to  the  same  dimensions  as  the  Welland  Canal. 

The  MerchaTHs'  line  time-table  gives  the  time  for  a  propeller  to  pass  from  Mf>i 

to  Chicago  to  b;  about  eight  days;  and  about  six  hours  less  time  from  (Jhiet 

""ontreal. 

riie  Hicheli*!!  and  Ontario  Navigation  Com|)any's  time-tabh;  gives  the  tim«    for  •• 
sseuger  boat  to  pass  uj*  from  Montreal  to  I'rescott  tiirough  the  St.  La  wren  '(  "r. 


igo 
Montreal 

'1 
passenger  boat  to  pass  u]>  nwiu  ^.iuhik.h  uw  x  i<owi'<.i;  lywi.f.if^n   uu<    -jk.  l...  ..  >'oii  -,    >. 
nals  about  {wenty-t\70  hours,  aTid  from  Prescott  to  Montreal  down,  via  theRa^jidu, 
about  nine  hours. 

The  average  time  to  pass  through  the  Welland  Canal  is  from  fourteen  to  sixteen 
bours. 


Mr.    Wharton  to  Mr.  Lay. 

|Ti)lt>graiii.| 

Depaktmknt  ok  Statk,  JVaahington,  April  S,  1S92. 

Send  copy  of  order  in  couueil  relating  to  tolls  on  Welland  Canal,  if  published, 
and  any  information  respecting  it. 

Wharton. 


No.  174.1 


Mr.  Lay  to  Mr.  fVharion. 

CONHULATlC-GKNKHAr.   OF   THK    HnITKI)   STATKS, 

Ottawa,  April  0,  1892.     (Received  April  12.) 


Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  the  Dei»artment's  telegram 
of  April  8,  1892,  as  follows:  "Send  copy  of  order  in  couueil  relating  to  tidls  in  VVel- 
laud  (laual,  if  published,  and  any  information  respecting  it." 

I  now  inclose  the  proof,  which  I  obtained  by  the  ccuirtesy  of  Mr.  Teakles,  of  ihe 
amendment  to  tlie  order  in  council  of  April  4,  1892,  inclosed  in  my  dispatcli  >fo.  173, 
of  April  7,  1892,  which  I  had  written  and  delayed  sending,  expecting  the  issuance 
of  the  iu'dosed  amiMidnient. 

I  will  siMid copies  when  tiiey  are  printed. 

My  dispatch  No.  173,  April  7,  1892,  will  give  full  information  regarding  these  tcdls. 
I  am,  etc., 

Richard  O.  Lay, 

Lomml-deneral. 


At  the  Oovkrnmknt  Hoisk  Ar  OrrAWA, 

Monday,  the  4th  day  of  April,  1892. 


the 


Present:  His  excellency  the  governor-general  in  council. 

His  excellency,  having  had  under  consideration  tiie  taritl  ,if  tolls  on  the  canals  of 

le  Dominion,  and  the  wveral  orders  in  council,  under  which  a  special  rate  has  from 


t^ECIPROCAL    TKADK    WITH    CANADA. 


25 


tiiiif  ti)  tiiuf  been  estiillislu'd  tiMiijxii'ariiy  on  (/crtiiin  ftxid  jirodncts  ])aHsin<j;  tliroiigli 
the  \Vcllan<l  Canal  and  tliioiigh  tlio  St.  Lawrence-  canals  for  slii])nient  at  Montreal 
and  ports  east  of  Montreal,  is  jdeased  to  order,  in  virtue  of  the  powers  vested  in  him 
l>y  eliapter  S7  of  the  revised  st:itntes,  entitled  '' An  act  res]ie(  tinu  rhe  department 
ofrailw;iys  ;<nd  canals,"  and  i)y  and  witli  the  advice  of  tlit^  (^neen's  privy  «:onncil 
for  Canada,  that  the  tolluwin^'  amendments  shall  he.  and  tlie  same  are  herehy,  nntde 
to  tlie  taritt  <d' tolls  in  force  on  tlie  said  canals,  viz: 

That  a  refnnd  )»•  made  (da  poi'tion  of  the  canal  tolls  <'ollected  on  wheat,  Indian 
corn,  ]»eaHc.  barley,  rye.  oats,  llaxsced,  and  l)nckwlieat  which  have  been  carried 
thronnh  rhe  Welland  Canal  and  the  St.  Lawrence  canals  to  Montreal  or  to  any  port 
east  of  .Montreal  in  all  cases  where  tlie  said  products  so  carried  are  exi)orted,  and  in 
«ueh  cases  only. 

That  this  re!iat(!  be  such  as  to  i-ednce  the  tolls  to  2  ctMits  jier  ton  of  the  said  jirod- 
ncts or  any  of  them,  and  that  the  conditions  of  snch  refnnd  be  the  following: 

Th;it  the  )irodncts  al'oresaid  on  which  the  reltale  of  tolls  may  be  .iaimed  shall  l)e 
shijwn  to  havi'  been  ori;:,ii!ally  shii)i>ed  for  Montreal,  or  fcr  some  port  cast  of  Mon- 
treal, ami  shall  be  shown  o  have  been  carried  to  Mnntr4",il,  ,)r  to  sonu'  port  oast  of 
Monti'cal,  and  actuall>-  sent  out  of  the  <-onntry. 

Th.'it  the  rifiht  to  this  rebate  shall  not  be  lost  by  I'eason  of  intermediate  transship- 
ment, provided  that  the  place  of  snch  transshipment  is  one  within  the  Dominion  of 
Canada. 

'I"h;it  the  ritiht  tc  this  rebate  shall  extend  to  any  ]iori;ioMs  at'  (.-ar^oes  lifrhtered  at 
I'ort  Coleman  ;uid  reshi])](ed  at  I'ort  l)alhonsie,  and  also  to  shipments  of  the  ahove- 
uuined  [irodncts  made  from  any  Canadian  Lake  Ont.trio  ])ort. 

That  |)aynn'iit  of  the  amount  to  be  refunded  be  made  from  tinn^  to  time  as  cargoes 
<f  the  said  |)roducts  are  dispatched  for  exjiort  from  .Montreal  or  from  some  ]»ort  east 
of  Montreal. 

TIfat  this  oi'der  in  council  renmin  in  force  for  the  present  year  (181'U)  only. 
'  .John  .L  McCkk, 

,^  ,  (Irrk  of  Ihe  I'rivii  f'oiinril. 

In  cariyiiifi  out  the   ]»rovi8ions   of  the    foregoing   order  in   council  (of  the  4th  of 
.).    April,  18!»l')  the  C(dlector  at    I'ort  ('olborne    will   ctdlcct  the   full  rate  of  tolls  on  the 
Welland  Canal  and  issue  an  otticial  receipt  therefor. 

The  authorized  reducti(m  nl'  tolh  will  he  ]>aitl  by  the  dejiartmeut,  as  a  .•efuiKl, 
npou  evidence  beinjj  furniHhed  that  the  conditunis  of  the  order  in  council  have  been 
complied  with. 

The  vouchers,  proi)erly  ind(»r.sed,  ami  certitieate  of  export  must  in  all  eases 
accompany  the  apijlication  for  i  refund  of  the  tolls  referreil  to. 

B.  H.  Tkaki.ks, 
Chief  Clerk,  Canah  Ueve.nu<\ 

Dv.vxKiwv.si  t)V  Railways  an'd  Canai.m, 

(niawa,  Aiiril  '>,  lS9'i, 


-mm^f 


LaKK    CaIJKIKRS'   A.SS()CIATI()N, 

liiifalo,  A',  v.,  .Stptembir  18,  1S91.. 

Sin:  I  inclose  herewith  a  coi)y  of  a  resolution  unaiuunnisly  ado|)ted  at  a  meeting 
of  the  board  of  mamii^ers  of  the  Lake  Carriers'  Association,  Indd  in  this  city  on  the 
18th  day  of  September,  1891;  also  a  copy  of  the  statement  or  brief  addressed  to  you, 
to  which  said  resolution  refers, 

I  also  send  under  separate  cover  a  copy  of  supplennmt  No.  1  to  the  last  annual  re- 
port of  the  Canadian  department  of  railways  and  canals,  which  is  fre<iuently  referred 
to  in  the  statement  or  brief, 

K'espectfully  calling  the  attention  of  your  Department  to  the  grossinjustice  to  our 
citizens  !is  shown  by  tlie  aci^ompiriying  docuuicnts,  1  remain. 
Very  respectfully  yours,  • 

C.  H.  Kekp,  Secretary. 

Hon,  Jamkh  G.  Blaink, 

Seviettirif  of  Slate,    Wanhingtiin,  l>.  C.  '  "T" 

At  a  meeting  of  the  b(»ard  of  niauag<"n  of  the  Lake  Carriers'  Association,  held  at 
Butl'alo,  N,  v.,  on  this  18th  day  oi'  September,  1891,  the  following  resolution  was 
unanimously  adopted : 

Ue«i)\rcd,  That  the  secretary  forward  to  the  Department  of  Fitate  at  Washington 
the  annexed  statement  or  l)rief  relating  to  t<dl8  on  rue  Welland  Canal  discriminat- 
ing against  American  vessels,  jiorts,  and  citizens,  and  respectfully  urge  the  Govern- 


26 


KECIPiiOCAL    TRADE    WITH    CANADA. 


ment  of  the  I  Init(Ml  States  to  take  prompt  and  enorgetic  measures  in  tlie  <iircction 
therein  indii'iited  to  socure  to  our  vessels,  porta,  and  citizens  their  full  rif^hts  under 
the  treaty  of  May  8,  1871. 

S.  D.  Caldwkll,  President. 
A  true  copy : 

'      ,  .,  C  H.  Kk\:v,  Srcrefa)!/. 


.        ,  Lakk  Caukikks'  Association, 

Jiiifalo,  X.  Y.,  Si'plemhcr  IS,  1891. 

8ik:  Tlui  approachinn  conference  between  coniniissioners  anpointetl  by  the  gov- 
ernnifiit  of  tlic  lUmiinidii  of  Canada  and  rt']>iesentativ<'s  of  our  o\\  n  I'nleral  (iov- 
ernnient.  to  cou.sidcr  the  .subject  of  rcciprnciil  trade  relations  li(>t\veeii  Canada  ami 
the  Tuited  States,  leads  this  assdciation,  which  reju'esents  the  or;>ani/,ed  vessel 
owners  of  the  (ireat  Lakes,  to  call  the  attention  of  the  DepMrtnient  of  .State  to 
what  it  believes  to  be  a  ))eisist<!nt  and  deliberat<?  violation  on  the  part  of  the 
Dominion  govermiient  of  Article  xx\ii  of  tlietreaty  between  (iicat  Britain  anil  the 
United  States  which  liears  date  May  8,  1871,  and  is  known  as  the  treaty  of  Washinj:;- 
ton.     The  article  above  referred  to  re, ids  as  follows: 

"The  (iovernment  of  H(  r  Britannic  Majesty  enjiafjes  to  ur^fc  upon  the  jiovern- 
ment  of  the  Dominion  of  Canatla  to  secure  to  the  eitizens  of  the  I'nited  States  the 
use  (d' the  Welland,  .s;.  La  rence,  ami  titlier  can.als  of  the  Dominion  on  terms  of 
eijuality  with  tlie  iuiiaMiaiits  of  the  Doniiidon:  and  the  (iovernment  of  the  LTnited 
States  enf;a;.;es  that  the  subjects  of  Her  Britannic  .Majesty  shall  enjoy  the  use  of 
the  St.  Clair  Flats  Canal  on  terms  o;'  eiiuality  with  the  inhabitants  of  the  Ihiited 
State,  etc."' 

The  following  is  a  brief  statement  id"  the  facts  showii;<;  a  violation  of  this  artidp  on 
the  i»art  of  the  Caiia<lian  j;oveiiinient  by  the  im^iosition  of  tcdls  and  the  institution 
of  ii  system  of  rebates  on  the  Welland  Can;il  which  discriminates  ayainst  citizens  q£ 
the  I'nited  states  and  in  favor  ol' the  inliabitants  of  the  Donnniou  of  Canada: 

The  Canadian  aovernnient  im|)ose8  car<;o  tolls  on  traflrtc  ]iassinii  tbrou'^h  the  Wei 
land  Canal.  In  the  ease  ot'^rain.  tloui',  {\'w\,  ete.,  these  tolls  are  JO  cents  ]>cr  ton. 
For  some  y(*:irs  jiast,  however,  the  Canailian  j^overnment  has.  just  before  tln^  o](en- 
ing  of  lake  na\  ;<iiition,  issued  an  order  in  eonncil  urantinj;' a  rebate  of  IX  cents  per 
ton  (d' the  l(dls  on  grain  trallic  ])a8sin.L!;  tlirongli  the  Welland  Canal,  ])rovided  the 
grain  was  carried  thfongli  to  Montreal  or  some  port  east  of  .Montreal.  .\s  the  cl<''iss 
<d' boats  engaged  in  carrying  grain  from  the  ujjpei-  lakes  through  the  Welland  Canal 
is  unalile  to  pass  tliroughthe  ,*^t.  Lawrence  can.ils  it  has  been  customarx  to  transfer 
their  grain  cargoes,  when  destined  to  .Montreal,  to  lightei'  draft  vessels,  fhistrans- 
fer  u|i  to  the  season  of  1890  was  made  at  the  ('anadi.in  ]>ort  ot  Kingston.  During 
the  season  of  18(10  about  Hi. 000  tons  of  grain  which  passed  throngli  tin'  Widland 
C'.'inal  and  was  destined  for  .Montreal  was  transferred  from  lake  vessels  to  river 
barges  at  the  jiort  (d' (>gden8l)urg,  \.  ^'.  At  Kingston  grain  is  trnnaferrcMl  directly 
from  the  vessel  to  tlie  liver  barges,  but  at Ogdensburg,  whei-e  theic  are  large  eleva- 
tors and  storage  capacity,  the  grain  was  transferred  through  an  elevator. 

As  this  grain  was  chietly  destined  for  ocean  export  from  .Montreal,  the  process  of 
transfer  at  Ogdensbntg  h,id  decided  adxantages  o\<r*nat  at  Kii>.>istt)n.  The  grain 
having  been  taken  from  the  hike  vessel  into  the  idcvator  at  Ogdensburg.  could  be 
stori'd  there  until  the  ocean  steamiTon  which  it  was  to  be  shipped  was  alioiit  ready 
to  load  in  Montreal.  It  could  tln^n  be  transferred  to  barges  and  reach  Montreal 
just  when  it  was  needed  for  loading.  By  this  means  a  considerable  ex])en8e  was 
a\'oided  and  a  consideralde  advantage  gained  over  the  system  of  transtV'.r  pra.cticed 
at  Kingstfin.  where  tin'  river  barges  often  arrived  in  Montreal  a  c  nsideiable*  period 
of  time  bef(U'e  the  ocean  steamer  at  that  port  w  ,is  ready  to  load,  in  which  case  the 
grain  was  held  to  await  the  steamer.  ,it  (  onsideiable  exi»ense.  .\lfhougIi  the  order 
in  council  giiinting  rebate  on  Montreal  grain  for  the  season  of  IHiMI  was  absidiite  in 
terms  and  contained  no  provision  (Mmtiiiing  the  )»ayiiient  of  such  reliate  to  grain 
t»'ansshipped  at  one  port  rather  than  another  the  Omidian  government  at  first  de- 
clined to  iiay  the  rebate  on  tlie  grain  transshij^pcMl  at  Ogdenslnirg,  but  to(d;  the  mat- 
ter under  emisideiation  ,md  made  no  decision  until  aliont  the  closti  of  mi\igation  for 
the  season.  It  wa.>t  then  decided  that  the  rebate  must  be  jiaiil  on  the  grain  trans- 
ferred at  Ogdensburg.  and  sui'h  jiayim'iit  was  made.  The  ett'ect,  however,  of  the 
government's  action  in  withlndding  its  decision  until  the  close  of  navigation  was  to 
l»ut  an  end  almost  entirely  to  the  transshipment  of  grain  at  Ogdensburg  because  the 
forwarders  were  uncertain  as  to  whether  tliey  would  g«'t  their  reliate  or  not,  Jiml  did 
not  care  to  asHuine  the  risk  of  .an  'intinorable  decision  liy  the  Caiiiidiiin  authm-it ies. 

On  Man  b  J.'i,  18itl,  the  Canadian  government  issued  a  new  order  in  council,  ]iro- 
vidingfor  the  usual  rebateof  18  cents  per  ton  on  Montreiil  grain  during  the  season 
of  1891 .     This  order,  however,  ditt'ered   from  orders  made  in  former  years,  an<l  the 


RECIPROCAL  TRADE  WITH  CANADA. 


27 


conditions  of  til o  rebate  are  utated  in  the  order  iis  follows:  '*  First,  the  i)rodiictn 
afores:iid  on  which  the  refund  may  be  elainied  shall  Ite  shown  1o  havejiccn  orijii- 
n.ally  shipped  for  Montreal  or  sonu?  port  east  of  Montreal  Ixfore  enteriiijf  the  Wel- 
land  Canal.  S<'eoMd,  they  shall  he  shown  to  h.■lv(^  hi-eii  actually  carried  to  Montreal 
or  some  i>ort  i-ast  of  Moutrcjil.  Third,  tr^'i'-'-'-ipmont,  it' at  a  Camidiau  iiiteruiediate 
port,  sliall  not  prevent  tll(^  refund  aforesaid  heiii<i^  made." 

While  the  third  condition  aliove  stated  (I.K'siKtt  state  uneiiuivcali.N  tliat  tr;ni8sliip- 
meiit  at  ail  American  int«'rmediate  port  will  prevent  the  refund,  it  is  ifcner.illy  so 
interpreted  There  can  lie  no  doubt  that  the  intention  in  wording;'  this  condition 
was  to  carry  the  impression  that  on  Montreal  uraiii  transferrcil  at  0<i<lensbur;;j  the 
refund  would  not  be  ]i;iid.  As  a  matter  of  fact  a  few  carj^oes  of  Mmitreal  i;raiii  have 
been  transferred  iit  <  )gdensbiiig  during  the  presi'iit  year,  for  the  ]niriiose  of  testing 
this  order  in  council,  iiiid  in  each  case  a  dem.iiid  for  a  refuml  has  been  refused. 
Shortly  after  the  (irst  of  these  cargoes  was  tijinsfcrred  at  Ogdeiisburg  the  Ciinadian 
government  issued  an  order  thiit  no  rebated  toils  niider  the  order  in  council  would 
he  paid  until  the  <'lose  id'  navigation.  It  is,  of  course,  impossible  to  say  absolutely 
what  the  i)ur]iose  of  this  last  order  was.  lint  it  seems  unite  likely  that  it  was  in- 
tended to  ]iost]ione  detinite  action  in  this  matter  until  after  the  reciprocity  confer- 
ence in  October,  so  that  at  the  time  of  such  eonference  the  Canadian  conii'iissioners 
could  claim  thtit  in  spite  of  the  wording  of  condition  thi'ee  oftht^  order  in  council 
above  refern^d  to,  no  act  mil  diserimiaatioii  had  yet  been  made  between  transshipment 
at  American  and  Canadian  ]iorts. 

So  miii'h  for  the  fiicts  relating  to  relmtes  on  grain  parsing  through  the  Welland 
Canal. 

>Sii]»plement  No.  1  to  the  annual  report  of  the  ('ami<li:iii  minister  of  railways  and 
canals  ^a  cofiy  of  which  is  sent  herewith)  contains  the  canal  statistics  tor  the  sca- 
s(m  of  navigation  of  18it().  In  it  will  be  lound  a  verilic,itiou  of  all  the  facts  herein- 
before set  forth  relating  to  the  year  \XW.  The  stateiiients  relating  to  the  order  in 
cmincil  and  the  course  of  i>roc<'ediiig  for  the  year  1X^\  can  be  casil,\  veritiei!  by  your 
department  through  the  United  States  ccmsiil  at  I'reseott  or  the  consul, general  at 
Ottawa. 

It  may  be  well  to  point  out  certain  other  facts  drawn  from  the  otiicial  report  of 
the  operations  of  the  Welland  Canal  for  the  season  of  navigati<iii  of  1H!I().  as  con- 
tained in  the  supplement  above  ieferre<l  to.  I'rom  that  H'liort  it  a]»pearsthat  in  the 
year  lf<y()  there  passed  down  the  Welland  Canal  to  (  anadiaii  ])orts  HtiH.Kiit  tons  of 
freight,  of  which  LllL',OH(l  obtained  a  rebate  td'  nine-tenths  of  the  canal  tolls.  During 
the  same  se.ison  there  jiassed  down  the  canal  to  the  liiited  States  jiorts  ;{L'7,><:W  tons 
of  freight,  ol' which  only  10.4:^3  toirs  olitained  any  rebat*'  whatever.  It  also  aitpears 
that  in  the  ytsar  18f(()  thci<'  [lassed  down  tlie  Wellanil  Canal  in  Canadian  vessels 
326,14!(  tons  of  freight,  «d' which  lKl,27r)  t<ins  obj^ained  a  rebate  of  nine-tenths  of  the 
tolls  exacted  at  the  canal.  During  the  same  season  there  ]iassed  down  tlw.  canal  in 
United  Stjites  vessels  8t5:i.l77  tons  of  freight,  of  which  ouly  .")J,1.">9  tons  obtained  -.x'.r,' 
rebate  tvhitever.  On  tralhi'  up  the  canal  no  rebates  of  tolls  were  jiaid.  but  of  such 
trath<-  up  the  canal  in  the  year  IXjK),  251, 1^42  tons  was  bound  to  American  ports  and 
only  :W,724  tons  to  Canadian  jiorts.  Of  this  Iratiic  21!),7l'()  tons  Avas  carrir 
American  vessels  and  only  72.340  tons  in  Canadian  '•essels. 

It  also  a]i]iears  in  the  report  that  during  the  y4ar  ISitO,  178, 9W  tons  of  coal 
carrit^d  up  and  23.39(5  tons  of  eoal  was  carried  down  through  the  Welland  Canal, 
the  eoal  carried  up  161. (>IH  tons  was  carried  lietween  |)oris  of  the  I'nited  States;  92 
tonB  was  carried  between  Canadian  jiorts,  aud  17,280  tons  from  a  I'nited  Stat<'s  to  a 
Cana<lian  port.  It  will  thus  be  seen  that  the  up  tralHc  in  coal  through  the  canal 
consisted  almost  entirely  of  a  movement  in  the  I'nited  States  coastwise  trade,  and 
was,  therefore,  necessarily  carried  in  I'niti'd  States  vessels.  On  this  up  niovc^meut 
of  coal  fall  lolls  of  20  per  cent  iier  ton  were  exacted.  Of  the  down  movement  of 
coal,  however,  22.781  tons  was  carried  to  Canadian  jiorts.  and  all  of  this  was  car- 
ried in  Canailian  vesstds.  Only  filTi  tons  of  coal  was  carried  down  Hiroiigh  the 
canal  in  an  .Vmerican  vess«d  or  to  an  American  jiort.  On  the  Uth  of  Ajiril,  18JK),  the 
Dominion  (ioverniuent  issued  an  order  reducing  the  toll  on  coal  passing  down  the 
I  anal  from  20  cents  to  10  crents  per  ton,,  but  leaving  the  full  toll  of  20  cents  on  coal 
bound  up  the  canal. 

U  also  ajipears  from  this  otiicial  report  that  of  the  Montreal  grain  transferred  at 
Kingston  during  the  season  of  18!H),  181,27")  tons  was  carried  to  Kingston  in  Canadian 
vessels,  and  3i"),r)fiO  tons  in  vessels  of  the  United  states. 

The  Lake  Carriers'  Association  believes  that  the  facts  hereinbefore  set  forth  Show 
very  plainly  .i  xiolation  l»y  the  Dominion  (Jo\ernment  both  <if  the  sjiirit  and  letter 
of  the  twenty-seventh  artii  h'  of  the  treaty  of  Washington,  for  the  following  reasons: 

First.  The  effect  of  the  rebates  on  .Montreal  grain  is  to  allow  practically  all  the 
grain  which  passes  through  the  Welland  Canal  bound  for  Canadian  ports  to  go 
through  at  a  toll  «if  only  2  cents  per  ton,  while  the  grain  whi(  h  passes  the  canal 
hounu  for  I'nited  IStates  ports  is  <ib]iged  to  pay  a  toll  ten  times  as  great.    It  is  nnder- 


I  in 

was 
Of 


28 


RECIPROCAL  TRADE  WITH  CANAbA. 


Ii;ll 


Htood  that  the  Dominion  Government  claims  that,  the  treaty  is  not  hereby  violated 
because!  th^*  gram  carried  to  (Janadian  ports  is  shi])pcd  from  ports  of  the  United 
►States;  that  tlicrel'ore  the  carriage  of  sucli  grain  is  ojien  both  to  American  and 
Canadian  vessels,  and  that  the  rebate  is  paid  alike  to  the  vessels  of  both  countries. 
Tliercfon^  they  claim  that  the  use  of  tlie  Welland  Canal  is  given  to  Canadian  and 
I'nited  States  vessels  on  e(|ual  terms.  It  is  to  be  noted,  however,  that  '.he  twenty- 
seventh  article  of  the  treaty  of  Washington  secures  the  eiiual  use  of  th  ■  canal  not 
only  to  American  and  Canadian  vessels  but  to  the  citizens  of  the  two  <ountries.  The 
purpose  and  intent  of  that  article  is  clearly  to  prevent  the  Canadian  (iovernment, 
by  the  use  of  vexaiidus  canal  reji|ulations,  or  by  any  device  of  discriminating  tolls, 
rebi'tes  or  refunds,  from  giving  to  their  own  vessels  or  to  their  own  ports,  or  to  their 
own  consumers  or  citizens  any  advanta"e  over  American  vessels  or  American  ])ort8 
or  American  consumers  i»r  citizens.  If  the  intent  of  tiie  treaty  had  been  simply  to 
secure  to  vessels  of  the  two  countries  equal  rights  in  the  canal,  such  intuition  would 
have  found  its  natural  expression  by  usii  ,  the  word  '■  vessels"  in  tlie  aitiele.  It  is 
(dear  that  the  intent  of  the  arti(  le  is  to  cover  a  broader  ground  and  to  secure  the  use 
of  the  canal  on  c(iuul  terms  not  only  for  Auujrican  vessels  but  foi  American  ports, 
consumers,  au<l  luisii^ess  interests.  The  grain  rebates  are,  therefore,  in  c dear  viola- 
tion of  the  treaty. 

When  an  American  vessel  loaded  with  grain  for  an  American  port  ])asses  the  Wel- 
land Canal  by  what  (ritizens  of  the  United  States  is  the  canal  used?  Is  it  not  used 
as  well  by  the  owners  or  consignees  of  the  cargo,  as  by  the  owners  or  charterers  of 
the  vessel'  Msxuiiestly  it  is  used  l)y  both,  and  the  Canadian  (Government  distinctly 
recognizes  this  fact  by  exacting  tfdls  from  both.  On  every  steam  vessel  jiassiug  the 
canal  a  toll  of  1^  cciits  i)er  registered  ton,  and  on  every  sailing  vessel  a  toll  of  2} 
cents  pel  registered  ton  is  collected.  In  adilition  to  these  vessel  tolls,  tolls  are  ex- 
acted on  the  cargo,  and  it  is  on  these  cargo  tolls  that  discrimination  is  made. 
When  two  vesstds  loaded  with  grain  arrive  at  tlie  canal togetlier,  one  cargo  <iestiued 
for  Ogdensburg  or  Oswego,  and  the  other  destined  for  Montreal,  and  the  Canadian 
Government  exacts  a  toll  ten  times  as  great  on  the  cargo  destined  for  the  United 
States  port  as  on  the  cargo  destined  for  the  Canadian  jiort  it  is  c dear  that  the  use  of 
the  camil  is  not  secured  on  equal  terms  for  the  citizens  of  both  countries.  On  the 
princi]»al  coninn)dity  passing  the  canal  there  is  an  audacious  discrimination  against 
American  forwarders,  ports,  consumers,  and  routes  of  exjxtrt  and  in  favor  of  Canadian 
forwarders,  ports,  consumers,  and  routes  of  exi)ort8.  In  the  year  1890  on  228,513 
tons  )f  grain  carried  through  the  Welland  Canal  to  Montreal  only  iHj.'jTO  tolls  was 
exacted,  while  on  245, ^♦H2  tons  of  grain  which  passed  down  the  canal  to  Ogdens- 
burg, Oswego,  and  other  United  States  ports  $49,186  was  exactetl.  Surely  this  is 
not  giving  tlie  use  of  the  canal  on  equal  ti-rms  to  inhabitants  of  the  Dominion  and 
■citizens  of  the  United  St.ites.  A  cajeful  study  of  the  oHicial  canal  statistics  for  the 
year  1890  shows  that  the  Dominion  (Jovernment  collected  on  the  Welland  Canal  over 
«nd  above  all  refunds  cargo  tolls  to  the  amou»it  of  $i;il,00(),  and  that  of  these  tolls 
cargo  destined  for  American  ports  paid  .'!.97,0(.0  and  cargo  destined  for  Canadian  ports 
only  $37,0(K).  Of  the  total  cargo  tonnage  of  the  canal  .")7  per  cent  destined  for  Amer- 
ican jiorts  ])aid  more  th:in  72  jn'r  cent  of  the  tolls;  43  i)er  cent  destined  for  Canadian 
ports  paid  less  than  28  per  cent  of  the  tolls.  With  only  one-third  more  cargo  than 
Canada  we  paid  nearly  three  times  as  much  in  cargo  tolls. 

Mention  has  already  been  nnide  of  the  difference  in  th<'  rates  of  toll  on  west-bound 
and  east  bound  coal,  and  iti  the  statement  of  facts  above  given  it  is  shown  that  on 
this  article  as  well  as  on  grain  then*  is  a  clear  discrimination  against  citizens  of  the 
I  nited  States.  The  west-bound  coal  is  nearly  all  carried  between  I'nited  States 
jiorts,  and  therefore  necessarily  on  American  vessels.  Twenty  cents  a  ton  is  exacted 
on  this  trallic.  The  same  commodity  when  carried  throimh  the  canal  easi^-bound  is 
nearly  all  carried  to  Canadian  i>orts  and  on  Canadian  vessels.  By  an  order  in  coun- 
cil made  last  year  only  ten  cents  a  ton  is  exacted  thereon. 

8ecoinl.  There  is  the  clearest  possible  case  of  discrimination  against  citizens  of 
the  United  States  in  the  third  ccmdition  attached  to  the  refund  of  grain  tolls  as  such 
condition  api)ears  in  the  order  in  council  granting  such  refunds  for  the  year  1891. 
That  <iinditioii  implies,  in  the  plainest  possible  mauner,  th.at  nine-tenths  of  the 
grain  tolls  will  be  refunded  on  Montreal  grain  in  case  such  grain  is  transferred  at 
Kingston,  but  tiiat  no  such  refund  will  be  made  if  sue  h  transfer  is  nuule  at  Ogdens- 
burg. If  the  Canadian  Goverr.ment  claims  that  no  refunds  whatever  are  now  being 
made,  that  the  wlnde  sultject  will  lie  talven  up  at  the  close  of  the  season  of  naviga- 
tion, and  that  refunds  on  gram  transferred  at  (Jgdensluirg  have  not  yet  been  deti- 
nitely  refused,  it  is  sutlicient  to  say  that  the  (dear  and  necessary  efleet  of  this  conili- 
tiou  in  the  order  in  council  is  to  drive  the  business  away  from  the  Ogdensluirjj 
riMite.  So  long  as  a  condition  thus  expressed  aiijtears  in  the  order  in  council  grant- 
ing grain  refunds,  no  forwarder  of  grain  can  ])rudently  tranship  it  at  Ogdensburg. 

Third.  The  system  of  tolls  n<»w  in  use  in  the  Welland  Canal  is  a  discriminati«m 
against  American  vessels  us  well  as  against  American  ports,  consumers,  routes  of  ex- 


KELIPKOCAL    TllADi:    WITH    CANADA, 


29 


«■( 


port,  ami  inrwiinlcrs.  liy  coiiHiiinj^  tlic  jjriiutinjj;  of  jiiiiin  refunds  to  jiiMin  tr.iiis- 
Hliip))e(l  iit  KiiijistHr.  the  C".ni;i<'i:m  (tovi-rniiiciit  thus  excluiics  from  tlic  oimration  of 
the  lefuutl  order  th^'  r(;;iiihuly  nr^fiinized  linesof  American  vessels  ruuninn  roOf^dons- 
bnrfj.  It  eoulines  rlie  heiu'lits  of  the  order  iu  eoiuieil  to  Aiiierieau  vessels  wliich 
may  run  to  a  t'ertuin  Canadian  port  and  wliile  tlii-i  Muntreal  ^rain  siiipped  from 
ports  of  the  I'nited  Mates,  and  tor  that  reasan  its  carriage  from  such  ports  to  Kinj^s- 
to'j  is  ojten  to  vessels  of  tlie  I'lnfed  States,  its  a  imitti-r  of  fart  this  line  of  the  earry- 
iny;  trade  is  in  tiie  Jiands  <if  Caniidiau  vessels.  We  have  seen  also  that  in  the  east- 
honnd  eoal  traliti<-  thi'tn<;li  the  i-aual.  where  such  trallie  is  almost  entirely  carried  in 
Canadian  vessels,  a  toll  isexaeted  onl\  one-halfasyreat  as  iu  theciaseof  tiie  west-honnd' 
tratlie  ill  the  sinie  eominudity,  such  west-bound  tralHe  lieiui;  almost  entirely  United 
States  coastwise  trade,  and  therefore  necessarily  in  the  hands  ot'  Amerii'an  vessids. 
We  Hiibrait  that  it  is  not  jiivin;^-  the  use  ol'  the  Welland  Canal  to  Initt'd  States  ves- 
sels on  terms  of  e(|uality  with  those  of  the  |)omini(Mi  to  select  lines  of  trade  which 
are  in  the  hands  of  I'nited  .states  vessels,  and  in  such  cases  to  ex;ict  full  <-ar<io  t<dl9 
while  <frantinj>-  f^reatly  rednced  rates  of  earj^o  tolls  in  lines  of  trade  which  are.  as  a 
unitter  of  fact,  in  the  hands  of  Canatlian  \esscls. 

Hidieviu};'  that  the  facts  ami  reasons  above  jiiven  show  a  clear  violation  by  the 
Canadian  Covernment  of  the  treaty  oblij^ations  entered  into  by  (ireat  Mritain  on  its 
behalf,  we  have  thought  this  a  nK)St  opjiortnne  time  for  bringing'  the  whole  subject 
to  the  attenticMi  (d' your  Department.  In  n  few  weeks  tin?  comndssioners  appointed 
by  the  Donnnion  (iovernment  will  visit  ,  ashin;;ton  for  the  express  jmrpose  of  con- 
ferring with  representatives  of  the  United  States  on  the  reci})rocal  trade  relations 
of  the  two  countries.  A  favtuable  opportunity  will  thns  be  afforded  foi  bringing 
this  matter  formally  to  the  avtenticni  of  the  Dondniou  (Jovernnient.  and  for  demand- 
ing that  henceforth  the  Welland  Canal  shall  be  ojieu  i'or  business  to  citizens  of  the 
United  States  on  terms  of  e(inality  with  the  inhabitants  of  the  Dominion,  without 
discrimination  against  either  American  j>oits,  consumers,  forwarders,  or  vissi'Ib. 
.Should  the  Canadian  Government  not  grant  redress,  and  shonhl  it  continue  to  Indd 
that  the  regulations  now  in  force  are  no  vi<dati<ni  of  the  treaty,  then  the  United 
States  (iovcrnmeut  would  certainly  be  tree  to  place  upon  the  treaty  the  same  con- 
struction placed  ujion  it  by  the  Canadian  (Jovernment. 

It  could,  therefore,  place  in  force  upon  the  St.  Clair  Flats  Canal,  and  the  St. 
Marys  Falls  Canal,  a  system  of  tolls  whi  di  wouhl  ojierate  against  Canadian  vessels 
and  ports  Just  as  the  AV(dland  Canal  tolls  oi»erate  against  our  own. 

Sui»pos<?  the  United  States  should  put  in  force  regulations  whereby  all  vessels 
passing  the  St.  Clair  Flats  Canal  oi'  St.  Maiys  Falls  Canal  bound  for  any  port  of  the 
lhiite(l  States  should  Im-  allowed  to  i)ass  without  paying  tolls  while  high  cargo  tolls 
were  exacted  from  all  vessels  passing  these  canals  bound  for  any  Canadian  portf 
Such  regnlati(uis  <'onld  certainly  not  lie  coni)dained  of  by  the  Canadian  government. 
If  it  were  found  as  a  niattta-  of  fact  that  any  j)ai't  icular  co."modity  carried  to  any 
Canadian  [)orts  through  these  canals  was  usually  carried  in  .Viaerican  vesstds.  or  was- 
a  trade  from  which  the  business  intt^'ests  of  the  United  States  were  deriving  lienetit, 
tll(^n  snidi  connnodity  might  be  exeni]»ted  from  the  paynu'iit  of  tolls  Just  as  Montreal 
grain  and  east-i>ound  coal  are  jtartly  exempted  on  the  Wcdland  Canal,  leaving,  how- 
ever, all  Canadian  coastwise  business  fhiough  these  canals  and  all  business  through 
these  canals  Ixunid  to  Canadian  ports  and  usually  carried  in  Canadian  vesstds  subject 
to  su(di  heavy  tidls.  ^ 

Siinjtle  Justie(^  to  Anu'rican  f(U\varders  and  vessel  owners  reipiires  that  on  grain 
bound  for  Montr(fal  th<^  same  tolls  should  b.  exactiMl  at  the  St.  Clair  Flats  Cainil  that 
are  now  exacted  at  tiie  Wt  Hand  Canal  on  grain  destined  for  jtorts  of  the  United 
States. 

Very  respectfully  yours, 

L.viir.  Cakkiicus'  Association,, 
Pet  (J.  H.Kekv,  Si'crviary. 

Hon.  Jamks  (i.  IU,A.iNK, 

iSecntari/ of  stttif,  IVaHh'mgton,.  I)^  C, 


30 


RECIPROCAL  TRADE  WITH  CANADA, 


[Extracts  I'roiu  Siipiileiueut  Xo.  1  to  tlid  Annual  Jloport  of  the  (Canadian  Dopartiuont  of  luilways  and 

Canals  for  the  year  ended  June  no,  1890.  J 


J 


(iUANTlTV  or   (IKAIX   PASSKD   UoWN   Til..   WKIXAND  CANAL. 

The  iiuautity  of  barley,  corn,  oats,  ponstj,  rye,  and  wheat  iiassed  down  the  Wel- 
laml  Canal  from  port:,  west  of  I'ort  Colborne  for  a  i)erio(l  of  11  years  is  as  folhiws: 


Year. 


(jliiantity 

l)asse(l  down 

to  Montreal 

ou  whieli  a 

refund  of 
toll.i  was  al- 
io wed. '~ 


(Quantity  on  whleh  full 
toll  wan  paid. 


1880 i 

1881 ; 

1882 

1883 

1884 

1885 

1888 : 

1887 i 

1888 1 

1889 1 

1890 1 


Tonn. 

;t3:i,  806 

14t),  127 
18l>.  ti94 
180,814 
142,  194 
!Mi.  t>.')9 
20:i.  940 
ISf).  o;i4 
100,358 
2<57.  709 
228.513 


To  1)01  ts  in 
Dntario. 


Tout. 


10,050 
12,15;) 
11,909 
9,881 
11.  838 
25,  b.^9 
19,07i 
10,  SSI* 


I 


(Quantity 
from  United 
f5l.ate,s  ports 

to  United 
States  ports. 

Tons. 

47. 029 

64,  351 

03,  881 

121,870 

IU4, 537 

117,346 

15|1,  551 

134, 808 

169.  064 

213,760 

245, 932 


'  A  refund  of  10  reiit.s  per  ton  was  allowc^l  on  };rain  passed  down  the  Wellaud  iind  St.  Lawrence 
caiials  to  Montreal  for  1884  and  to  .June,  1885,  niid  18  cents  per  ton  from  1st  .luly.  1885,  to  l)e(uinil)or,1890. 

From  the  foregoitij;  iigiires  it  will  be  seeu  that  the  qnautity  of  grain  passed  down 
the  Wellaud  Canal  from  United  States  ports  to  United  States  ports  has  steadily  iu- 
(Teased  each  year  from  47,029  tons  in  1880  to  24.0,932  tons  in  1890,  being  an  increase 
of  198,903 terns,  and  anincreaseoverthepreviousyear  of  32,l(i6tons.  Theiiuantity  to 
Montreal  sliows  a  decrease  of  39,25G  tons  for  1890  from  the  previous  year,  and 
104,293  terns  less  than  in  1880. 

THROUGH   TKAFFIC  HKTWKKN   Mo     IKKAL  AND   PORTS  ON  LAKES   ERIK,  MICUKJAN,  ETf  . 

The  total  quantity  of  freight  passed  eastward  and  westward  through  th«'  Wel- 
laud and  St.  Lawrence  canals,  from  Lake  Erie  to  Montreal,  during  ten  years,  is  as 
follows : 


Year. 


Eastward.* 


•  I     •      T07lg. 

!88l 169,213 

1882 108,  835 

1883 205,394 

1884 168,715 

1885 132,968 

1886 244,  ,514 

1887 213, 834 

1888 18.^,899 

1889 298,197 

1800 231,746 


Westward.t 


Tout. 
37, 190 
24,488 
27, 488 
9,425 
16, 115 
10, 801 

.  14, 075 
19,  310 
25,370 
31, 951 


*  Allowed  to  pass  tlirouyli  the  St.  Lawreuie  caiials  free,  per  ordi^r   in  couucil,  21.-<t  April.  1881,  and 
a  refiiud  of  18  eenlH  i)er  Ion  of  Wcdland  Canal  ttilU  on  •{rain  for  1885,  1880,  1887,  1888,  1889,  and  1890. 
I  Allowed  to  |iass  through  the  Widland  Canal  free,  per  order  in  eouiieil,  21st  April,  1881. 


I 


RECn»ROCAL    TRADE    WITH    CANADA. 


FUKIGHT   KUO.M    fNlTI'I)   STATKS    I'OKTS   TO    INITKD   STATKH   I'OHTS. 


31 


The  total  qnantity  of  fieijjht  passed  eastwiiid  and  westward  throujjh  the  Wellaud 
Canal,  from  United  States  ports  to  United  States  ports,  for  a  jieriod  of  ten  years,  is 
as  follows: 


Yfil! 


EaMl.wnrd.       Westwiird. 


1881 

18«2 I 

188;! 

1884 1 

]88fi 

188B 

1887 

1888 

]88!> : 

18!tO ; 

I 


'J'llllK. 
!i(i,  20fi 
110,280 
174, 9r.' 
ltd,  «98 
l««,  212 
244. 916 
189.427 
221,  0B2 

2it7,  :tr>;i 
;t  18, 2.59 


Tuna. 
It7,  907 
172, 520 
2.-.7,  ti99 
24 1!.  081 
216,  297 
2;i»,  ,562 
151,074 
21;!,  089 
266.  2;!1 
215,698 


It  will  tlms  lie  seen  that  tlie  (piantity  of  freight  paswed  eastward  througli  the 
Welland  Canal  from  United  States  port.s  to  I'nited  State.s  ports  shows  a  very  marked 
increase,  havinj;  incre.-ised  from  96,2H()  tons  in  1881  to  31^!,2'''^  f^*""*  '"  I^9(),  and  which 
is  an  increase  of  2(),90()  tons  over  the  previous  year. 


^  CHAMISKH    Ol'    COMMI-.KCK, 

'  Mil irauket;  thlober  22,  IS91. 

Dkak  Sik:  I  have  the  honor  to  transmit  to  your  Department,  and  to  the  President 
of  the  L^nited  States,  the  following  resolutions  adopted  at  a  meeting  of  the  board  of 
directors  of  the  Chamber  of  Commerce  of  the  City  of  Milwaukee  held  on  the  21st 
instant,  and  beg  to  request  that  you  will  take  such  course  in  the  premises  as  you 
may  deem  ex}>edient. 

Yours,  very  truly, 

\V.  J.  Lanuson,  Secretary. 
Hon.  .Jamk.s  G.  Blaixk,  ^ 

Secretari/  of  State,  Wushiuyton,  I>,  C. 

KesohitioiiH  adopted  by  the  board  oj  direriorx  of  the  Chamber  of  Commerve  of  (he  City  of 

Miluaiikee. 


Whereas,  Tlie  system  of  tolls  i  nd  rebates  adopted  by  the  (,'anadian  uoverument 
on  the  Welland  Canal  by  cont'^iing  the  rebates  of  tolls  to  cargoes  shipped  to  Can- 
adian ports  and  to  cargoes  tr  nsferred  at  Canadian  port.s  for  such  shi])ment,  and  by 
subjecting  the  traftic  in  which  American  vessels  are  mostly  engaged  to  much  higher 
tolls  than  the  traffic  in  which  Canadian  vessels  are  mostly  engageil.  constitutes  a 
discrimination  against  citi/ens  of  the  luited  States  in  tlie  use  of  said  canal  in  vio- 
lation of  the  sjdrit  of  the  treaty  obligations  entered  into  by  Great  Hritain  in  its  be- 
half: Therefore, 

Keaotred,  That  tlu'  Department  of  State  of  the  United  States  lie  earnestly  retjuested 
to  bring  this  matter  formally  before  the  Dominion  (Jovernmeut,  and  to  demand  that 
henceforth  the  Welland  Canal  shall  lie  (rpen  for  business  to  eitizeiiJ  of  the  United 
States  oil  terms  of  equality  with  the  inhabitants  of  the  Dominion  without  dis<rimi- 
uation  against  either  Americjin  p<»rts,  consumt>rs,  forwarders,  or  vessels,  in  acciord- 
auce  with  the  obligations  of  the  existing  treaty  between  (ireat  Britain  .ind  the  United 
States,  known  as  the  treaty   of  Washington. 

liCHolred,  Th.-it  a  copy  of  these  resohitiims  be  sent  to  tlie  I'resideiit  of  the  United 
States  and  to  the  Secretarv  of  State  at  Washington. 

[SKAL.]  L.  !'.   Macon, 

*  President, 

Attest:  .  W.  ,J.  Lan(;h<)N. 

Serrefary. 

A  menu)rial  was  received  from  the  Chicago  Board  of  Trade  dated  Octolter  30,  ISfll, 
in  the  same  language  as  the  memorial  of  the  Lake  Carriers'  Association  of  Buffalo, 
N.  Y,,  dated  September  18,  1S91,  printed  above. 


32 


REClPRv  CAL    TRADE    WITH    CANADA. 


i\\ 


BOAHD   UK   ThADK   OK   THE   ClTY   oK    DkTUoIT, 

Dfiroit,  Xovemher  11,  1S91. 
Hon.  Jamks  {\.  Hi.AiNE, 

Secri'lari/  of  Slatr,  ft'oxhitialoii,  D.  C: 

The  Boar.l  of  TrinU'  of  tho  City  of  Di'troit  dosiri'ts  n^spectfully  to  tiill  your  attention 
to  alh'j^ed  (liHcrimiiiatidijs.  or  vexatious  u^iLjiilatioiis  said  to  lie  cstaldislicd  by  tho 
Canadian  ^ovorunR'nt  in  the  matter  of  t<dl8  conectcdon  oai'j^oes  passinnthe  Welland 
Canal  a;;ainst  VfNsds  or  far^rocs  hound  for  an  American  port,  and  in  favor  of  carjioeH 
hounil  for  Canadian  jKU'ts.  K'eliates  of  IK  cents,  froin  a  HO-cen*  rate  per  ton,  ai'e 
granted  on  cargoes  hound  for  Montreal,  or  portseastof  Montreal;  hut  if  sucli  cargoes 
are  transferred  at  Ogdenslnirg.  Oswego,  or  other  American  i»ort,  such  rehates  arenot 
allowed,  or  if  allowed,  m  much  douht  or  vexatious  delays  arc  incurred  as  jiractically 
to  ('lose  tlnwe  jiorts  to  such  coinmeree  and  force  trai'.e  into  (Canadian  ports  at  an  in- 
creased oxpi'nse  to  shippers.  P'or  instance:  Otticial  reports  of  Canadian  I)e])artnn'nt8 
of  Railways  and  Canals  siiow  that  during  W)0  ;!(iH,88!t  tons  of  freight  passed  tin-  VVel- 
lainl  (,'anal  for  (Canadian  ports.  Of  this,  212,  /KO  tons  obtained  th.'  rebate  of  IX  cents 
per  ton.  During  the  same  season  S27. 8.315  tons  passed  the  canal  bound  for  United 
.States  |)orts.  Of  this  only  U>.4I^;5  tons  olitained  any  rebate.  1  Miring  thesame  season 
there  passed  down  the  Welland  Cannl  in  Canadian  vesstds  326,11!)  t(nis  of  freight;  of 
which  18-1. 125  tons  obtaiiu'il  the  rebate  of  18  cents  per  ton.  During  the  sanu'  season 
I'nited  f^tates  vessels  carried  3()2,477  t(ui8  of  freight,  of  which  (Uily  .">2,l5it  tons  ob- 
tained the  rebate. 

[n  18t»0  228,513  tons  of  grain,  carried  throngh  the  Wellainl  Canal  to  Montreal,  paid 
only  il!4,i)7()  tolls,  while  mi  245,9.32  tons  of  grain  which  jiassed  the  canal  to  Ogdeiis- 
burg,  Oswego,  iind  other  United  States  ])orts,  )i!4i(,186  was  exacted.  With  such  a 
record  snridy  the  American  traile  is  not  eqiiiilly  favored  with  that  of  the  Dominion. 

Harly  in  the  present  season  (viz,  <>f  1891)  the  Canadian  government  issued  an 
order  that  no  rebates  n-hatever  would  l>e  paid  until  the  close  of  navigation  ;  but  so 
much  doubt  is  thrown  about  the  i)robability  of  .iny  rebates  l)eing  allowed  even  then 
on  cargoes  shipped  to  American  ports  btdow  the  can.il,  as  seriously  to  interfere  and 
injure  the  trade  of  those  ports  and  all  tra<le  by  citizens  (d"  the  I'nited  States,  for  this 
dih'erente  oi'  18  cents  ])er  ton  is  a  bnrdensome  tax  and  sometimes  almost  prohibitory, 
being  practically  a  tax  of  over  one-half  cent  per  bushel  on  e,v«'ry  bush*  1  not  allowed 
the  rebate.  We  believe  that  it  was  the  intent  of  tlu'  twenty-seventh  article  of  the 
treaty  oi'  Washington  to  secure  noth  to  .\nii'ricaii  anrl  Canadian  vessels  and  citi- 
zens equal  privileges  in  the  use  of  the  Welland  Canal,  the  same  as  is  granted  to  all 
vessels  passing  the  canals  throngli  St.  Clair  Flats  and  alxuit  the  falls  of  the  Sault 
St.  Marys  River,  but  the  .'xperience  of  slii]i])er8  to  Ann-rican  jtorts  proves  to  them 
that  such  is  not  the  qase. 

We  ludieve  that  the  foregoing  statements,  and  others  of  e((nal  force  that  might  be 
given,  show  a  clear  vi(dation  of  treaty  obligations  existing  between  the  two  gov- 
ernments, to  which  we  desire  respectfully  to  call  your  attention.  At  this  time  tho 
matter  is  laid  before  you,  because  in  the  near  future  it  is  pr<d»able  a  conference  may 
be  held  between  commissioners  representing  the  Dominion  and  our  own  Covern- 
nients,  hxdvingtothereestablishnient  of  reciprocal  ndations.  Such  an  occasion  would 
be  a  favorable  one  for  the  consideration  of  this  subject,  and  we  resjiectfnlly  petition 
that  in  the  negotirttiou  of  a  tre.ity  of  that  kind  this  ((iiestion  may  Ix;  settted  so 
clearly  and  by  such  definite  terms  as  to  j»reclude  any  doubt  and  forbid  any  discrim- 
ination relative  to  the  trade  of  American  citizens  passing  the  Welland  or  other  ca- 
nals belonging  to  the  Dominion. 

Adopted  nnanimonsly  November  10,  1891,  and  signed. 

,Tas.  H.  DftNOVAN,  Freddent, 
Gko.  M.  Lank,  Secrelaru. 


BoAKP  OF  Trade  Rooms, 

CUvcland.  Ohio,  November,  14,  1891. 
At  a  meeting  of  the   Hoard  of  Trade  of  Cleveland,  hehl  tliis  day,  the  following 
protest  to  disi  rimin.ation  against  Amerii'an  citizens  ami  t<»nnage  passing  through  the 
Welland  Canal  was  uniinimously  adopted  and  the  se(!retary  dintcted  to  forward  the 
same  to  H.n.  .lames  (J.  Hlaine,  Secretary  of  State,  W'ashingt<ni,  I).  C. 
(See  memorial  of  Detroit  Board  of  Trade). 

W^M.  Edwakds,  President. 
A.  C.  Be(h;v,  Secretury, 


(  f 


RECli'HOCAL    TRADE    WITH    CANADA. 


33 


()s\VK(io,  N.  v.,  Xon-Diher  .'1,  ISOI. 
Dkak  siu:  Tlio  reqtifst  made  to  you  by  the  Hoanl  of  Tra<le  of  Cliira^o,  a  synop- 
sIh  of  wlii(  1  1  incloBt',  is  JiiHt  and  tinu'ly.  If  an  oiiportiiuity  oi-ciiired.  ifMidciitM  of 
the  State  ol  New  York,  i)aiti(ulaiiy  those  icHidiiiy  on  the  northern  frontier,  would, 
without  i»artv  diwtimtiun,  unite  in  the  reipiest  made  by  .^aid  board.  It  is  a  well- 
known  and  understood  fact  tiiat  thi'  Canadian  <;overnnient  have,  in  violatictu  of  the 
ai)irit,  if  not  of  the  letter,  of  tiie  treaty  of  Washinjiton,  discriminated  in  favor  of 
cousif^nmeutH  made  to  Canadian  portM,  in  order  to  comitel  tlu^  .shi])meut  of  graiu 
through  Canada  by  the  Montreal  route. 

Anythiuy  you  may  be  able  to  do  to  rorrect  this  long  exi.stiuf;  evil   will  be  ai>pre- 
ciated  by  int(dlif;ent  Ameriean  riti/ens  everywhere. 

Relieving  you  will  give  ihi.s  suitjecl  the  attention  which  it  deserveH,  I  am, 

Respectfully,  yours,  ' , 

Max  r..  HiciiAi<i>80N. 

Hon.  .Ia.MES   (i.   IlLAlNK, 

Secretatjj  of  Stttif,  Ifanhinf/ton,  1).  C.  ■        .• 


lioAHi)  or  Ti.'ADK  Rooms, 
V  Osuqio,  N.  v.,  Sovember  24,  l.SHt. 

8iK:  The  Hoard  of  Trade  of  the  City  of  Onwego,  N.  Y.,  rt^Hpeetfully  invites  the  at- 
tention of  the  honoralile  Secretary  of  State  to  the  discrimination  jiractieed  by  the  i^o- 
minion  of  Ciinada  against  citizens  of  the  I'nited  States  in  resjiect  to  tonnage  i)aH«- 
iiig  througii  the  \Vell;ind  Citnal.  Iieing  in  direct  violation  ol'  the  spirit  ol' the  tr<'aty 
between  (ireat  iSritain  and  the  United  States. 

The  tolls  on  said  canal  on  merchandise  jier  ton,  liO  c»nts,  and  on  scssels,  regular 
tonnage,  2|  c(aits.  which  also  inidutlcs  St.  Lawrence  canal  t(dls,  are  remitted  on  all 
cargoes  exjtorted  \ia  St.  Lawrence  canals,  but  on  all  cargoes  passing  through  United 
States  ports  on  Lake  Ontario  no  rebate  of  Canatlian  eanal  tolls  is  allowed. 

Attention  is  resjject  tnlly  called  to  the  fa<t  that  the  discrimination  is  not  against 
vessels  l>ut  against  routes,  and  in  orilcr  to  obtain  the  rebate,  c;irgoes  must  go  via 
Montreal  for  export.  If  these  cargoes  are  received  at  Oswego  or  Ogdensburg,  au<l 
are  exported  by  way  of  New  York  city  or  Portland,  no  rebate  is  allowed  by  the 
Dominion  (joverument. 

This  is  especially  grievous  to  citizens  of  the  United  States,  as  the  Soo",  Erie,  Os- 
wego, Chamj)laiii,  and  all  United  States  canals  are  free  in  every  respect  to  Canada, 
2ud  as  the  grain  tonnage  forms  a  very  large  and  important  part  of  the  commerce 
of  our  (Ireat  Lakes  as  well  as  of  the  whole  country,  th»  evasion  of  the  treaty  by 
Canada  is  all  the  more  tlagrant,  and  works  directly  against  the  commercial  interests 
of  every  United  States  i»ort  on  Lake  Ontario,  and  to  the  corresponding  advantage 
of  Canadian  ports. 

In  view  of  the  approaching  conference  between  this  Government  and  that  of  the 
Dominion  of  Camida,  this  board  respectfully  requests  the  honorable  Secretary  to 
secure  for  our  citizens  perfect  equality  with  reference  to  commerce  passing  through 
the  WellandCanaL 

I).  M.  lUWIN, 

/'resident. 
J.  B.  Latjikop, 
Secretary. 
Hon.  James  (f.  Bi.ai.ne, 

iSeeretarii  uf  State,  Waxhinijtou,  D,  C. 


f. 


ROCIIKSTEK  CHAMItlCIt   OF   COMMERCE, 

Itocltvuler.  X.  T.,  Dvcemhor  S,  IS91. 


Sir:  The  Rochester  Chamber  ot  Commerce  respectfully  invites  your  attertion  to 
the  discrimi'-iation  practiced  by  the  authorities  of  the  Dominion  of  (Jaimda  fagainst 
citizens  of  the  United  States  in  re8])ect  to  tonnage  passing  through  the  Welland 
Canal.  « 

Sliiiqters  at  our  port  of  Charlotte  complain  that  this  discrimination  consists  in  a 
rebate  of  18  cents  from  a  20-cent  rate  per  trm  on  cargoes  bound  to  Montreal,  but  if 
transferred  at  Charlotte,  Oswego,  or  oXhvx  Ur.ited  States  ports,  such  rebates  are  not 
allowed.  This  dill'ereme  of  18  cents  is  ]»iacti(!ally  a  tax  of  one-half  a  cent  i)er  itushel 
of  wheat ;  and  the  discrimination  is  not  against  vessels  but  against  routes.  American 
canals  are  free  to  Canadian  vessels,  and  the  discrimination  complained  of  is,  thero- 

S.  Ex.  114 3 


m 


II  .1 


34 


KECIl'ROCAL    TKADJ:    WITH    CIANADA. 


fore,  all  the  iii(»re  jiriovouH  to  oiti/.<MiM  of  th«!  Uiiitod  States,  innl  w(irk«  pn^nt  injnry 
to  all  iinnortuiit  poition  <il'  tlm  coiiiinonc  of  onr  (irtat  Lakes. 

TluH  iliaiiilier  of  coiiiiiu'iec  rcsjicctfuliy  ie(|ii<'sts  that  the  hoiionilile  Secretary  of 
State  will  eiuleasor  to  seeiire  for  our  citizens  perfect  e(inaUty  witii  refereuce  to  coui- 
raerce  piiNNing  through  tlie  Welhuid  v'aual. 
Ke8i»ect fully  yours, 

E.  T.  ("ii.-ns,  rvixUUnl. 
(iKuiKiK  Moss,  Sn-rttary. 
Hon.  .Iamks  (J.   iii.AiNK. 

iSccretitrjj  of  Stale,  H  ((nhini/tun,  I).  C, 


.  Mr.   I'aunc  to  Mr.  IHaiiie. 

■*  Hoi'HE  or  Hki'I{E8Ent.\tivk8.  UxriKi)  States, 

IVnshinyton,  l>.  <'.,  Janimrii  9,  1S9.,'.  (Received  .January  lit.) 
My  Dear  Sik:  I  herewith  tile  with  yon  papers  in  reference  to  the  alleged  viola- 
tion of  the  treaty  (d'  Washington  relating  to  discriminating  tolls  iiuoosed  on  cargoes 
through  the  W(dland  Canal  whicdi  do  in)t  take  the  course  of  the  St.  Lawrence  Kiver. 
This  discrindnati(ui  is  a  great  hurdcn  to  commerce  destined  to  New  York  city 
through  iMir  Lake  Ontario  ports,  .and  destined  to  Portland,  Me.,  by  the  way  of  Ogdeus- 
hurg,  N.  Y. 

There  is  a  very  sirong  feeling  in  northern  New  Y'ork  upon  the  subject,  especially 
in  view  of  the  fact  tliat  all  of  onr  Statt'  canals  are  as  fr«!e  to  ("amidian  boats  and 
tMvners  as  they  are  to  our  own  citizens. 

If  it  is  deemed  dcKirable  that  Congress  should  take  any  action  in  the  matter,  I 
shall  be  very  hapjiy  to  present  the  (juestion. 
Y'tuirs  very  truly, 

r  Skreno  E.  Payne. 


[Incloeure  1.    From  Chicago  Tribune  April  25. 
IHscrimi nation  on  Canadian  canah. 


By  the  treaty  of  Washinpton  of  1871  it  was  agreed  that  the  Americans  slnuild  have 
the  use  of  the  Wtdland,  St.  Lawrence,  and  other  Canadian  canals  ''on  terms  of  equal- 
ity Wih  the  inhabitants  of  the  Dominion,"  the  I'nited  States  giving  to  the  Canadians 
the  use  of  the  Sault  Ste.  Marie  Canal  and  allowing  Camidian  vessels  to  come  into 
Liike  Michigan  and  take  cargoes  at  (,'hicago  for  Canadian  pf)int8. 

It  has  been  claimed  for  some  time  that  the  spirit  at  le'ast  of  the  treaty  had  been 
violated  by  the  Dominion  government,  and  that  better  terms  wt-re  given  to  Do- 
minion than  to  American  vessels  using  the  Welland  Canal.  Senator  Cnllom,  of  the 
Committee  on  Interstate  Commerce,  in  a  report  Just  made,  says: 

"An  unjust  discrimination  is  made  by  Canada  against  American  vessels  on  the 
lakes  in  the  matter  of  entrance  and  clearance  fei^s.  Vessels  ](assing  through  the 
Welland  Canal  bound  to  Montreal  have  a  rebate  made  of  a  portion  of  the  tidls  paid 
for  canal  j)ass.'ige;  but  if  bound  to  any  American  j)ort  or  to  the  St.  Lawrence  River 
no  n'bate  is  lu.-ide.  This,  the  report  claims,  is  a  violation  of  the  ))rovisions  of  the^ 
treaty  of  Wasbingtcui." 

Kr(uu  iiil  the  informatifin  which  the  rrit)uiie  has  been  able  to  gather  the  discrimi- 
nation is  not  so  much  one  against  Ameiican  vessels  as  against  American  routes. 
Whatever  is  done  is  done  with  the  oliject  of  forcing  tVeight  to  .Montreal  and  divi^rt- 
iiig  it  fnuu  Oswego.  Ogdciisburg.  ami  other  American  ports  f)n  Lakt^  Ontario.  It  is 
alleged,  for  instance.  l>y  (io\ernment  officers  atOsw»'go  that  a  \'essel  jiassing through 
the  W<dlan<l  and  (  uitinuing  on  to  Montreal  or  transshi]tping  I'reiuht  for  that  point  at 
Kingston  gets  a  rebate  (d' tin-  Welland  t<dh',  while  if  the  vesstd  WMit  to  Oswego  and 
sent  its  freight  to  the  sealioard  via  tiie  Oswego  ;ind  Erie  <'anals  it  would  get  no  re- 
bate. 

There  has  not  Iteen  made  public,  however,  any  pttsitive  evidence  of  the  actual  re- 
y)ayment  of  tc)lls.  ,)u<lging  by  a  circular  of  the  Dominion  (iovernment  the  matter  is 
(lone  in  another  and  more  ingenious  way.  It  is  provided  that  all  goods  westward 
bound  which  have  paid  full  toll  through  the  whole  line  of  the  St.  liawrence  canals, 
the  Lachine  Canal,  or  the  Ottawit  and  Hideau  shall  be  allowed  to  pass  free  through 
the  Wellitnd,  and  that  all  goods  eastward  iKuind  wdiich  have  paid  full  toll  through 
the  Welland  shall  be  allowed  to  pass  free  thrcmgh  the  St.  Lawrence  canals  to  Mon- 
treal or  through  the  Ottawa  and  Kideau. 


' 


•\ 


i/ 


V 


) 


RECIl'ROCAL  TKAUK  WITH  CANADA, 


35 


^ 


r. 


It  will  he  Heeii  that  tliis  is  not  a  matter  of  a  rebat*;.  It  is  dimply  ^ivliij;  a  lower  rate 
to  anyone  who  H8<!8  th<'  ontiif  syMteiri  i»f  Dominion  caiialH.  If  an  Am«;rit'an  veHSol, 
having  passed  thron^^h  tho  Wcliand.  wore  to  keej»  on  to  Kingston  and  Montreal,  it 
would  pay  no  tcdls  on  th«  lower  canals  and  would  be  on  "terms  of  perfeet  e(iinility  " 
with  a  Canadian  \e8sel.  No  vessel,  however,  ha\  ing  paid  tlu^  Welland  tolls  will 
unload  at  Ogdenslnirg  or  Oswegd  when  it  ean  run  on  witiiont  paying  a  cent  more  to 
Montreal  and  the  liead  of  ocean  navig.ition. 

It  is  a  blow  at  Aniericiin  routes  to  the  seaboard,  but  not  at  American  prcductH  or 
necessarily  at  American  ships,  '["he  Canadians  will  doubtless  say  that  where  a  per- 
son uses  all  tiieir  canals  they  can  afford  to  charge  him  less  than  when  In-  uses  only 
>ne  of  them,  and  that,  tlierefore,  they  are  not  acting  unfairly.  The  ([uestion  is  (um 
■which  slnnild  receive  the  prompt  attention  of  the  State  D«>partment,  and  all  will 
doubtless  acquiesce  in  whatever  course  it  may  recommend  shall  be  pursued,  for 
nobody  questions  Mr.  Blaine's  Americanism.  If  it  can  be  shown  to  the  satisfaction 
of  the  Department  that  the  treaty  has  been  violated  by  the  payment  of  rebates,  so 
that  Americans  were  discriminated  against,  the  attention  of  the  British  minister 
should  be  called  to  it  at  once.  If  it  is  fonml  that  while  the  letter  of  the  treaty  of 
Washington  is  observed  its  s))irit  is  broken,  it  would  be  w«']l  to  give  notic<'  that  the 
United  States  wishes  this  portion  of  the  treaty  to  come  to  an  end.  That  will  mean 
that  the  Canadians  who  have  not  yet  built  their  own  canal  at  the  Sault  will  be  unable 
to  use  the  Anu'rican  one  to  get  in  or  out  of  r>ake  Superior;  that  their  vessels  will 
have  to  keep  out  of  Lake  Michigan,  and  that  they  can  not  ship  goods  in  bond  from 
New  York.  Boston,  etc.,  to  Canada.  Whether  they  would  be  the  gainers  or  losers  by 
such  an  arrangement  they  can  easily  figure  out. 


'  > 


,  I  Inclosurt'  2.1  . 

Mr.  Lyman  to  Mr.  Incin, 

\  Custom  Hoisk,  O.swkgo,  N.  Y., 

i'oUevtor'n  Offiiv,  April  It),  1890. 

Deak  Slur  Your  inquiry  as  to  what,  if  any,  discrimination  is  made  against  our 
commerce  in  matt<T  of  tolls  upon  Welland  Canal  is  received.  lu  answer,  I  have  to 
say,  if  the  spirit  of  the  treaty  of  Washington  were  observed,  th<'re  would  be  no  dis- 
crimination, but  the  facts  are  these:  That  while  having  the  use  of  our  canals  with- 
out any  conditions  as  to  where  they  nuiy  go,  or  what  they  may  do  after  passing 
same,  the  Canadi.m  Government  have  undertaken  by  a  discriminating  regulation  to 
drive  the  export  and  other  traiie  by  way  of  Montreal,  by  landing  all  upper  lake  mer- 
chandise from  either  Canadian  or  American  vessels  upon  its  docks  very  much  chea})er 
than  they  <^an  the  same  at  Charlotte,  Oswego,  Ogdeusbnrg,  or  other  Lake  Ontario 
or  St.  Lawrence  ports. 

All  merchandise  passing  the  Welland  Canal,  destined  for  Lake  Ontario  or  St.  Law- 
rence Kiver  ports  above  Montreal  in  either  Canadian  or  American  vessels  is  subject 
to  canal  tolls;  but  if  carried  as  far  as  Montreal,  either  for  export  or  consumption, 
the  tolls  are  rebated  even  when  reshipped  from  Kingston  by  other  vessels  or  barges, 
or  by  cars,  which  makes  a  direct  discrimination  against  our  transportation  interests 
and  local  consumers  to  the  amount  of  the  Welland  Canal  tolls. 

The  following  are  a  few  of  the  items  of  tolls  referred  to,  viz;  Vessels,  steam,  1^ 
cents  per  ton;  vessels,  sail  and  others,  2^  cents  i)er  ton;  passengers,  10  cents  each: 
wood,  20  cents  per  ccud;  spars,  telegraph  poles,  etc.,  15  cents  every  40  feet;  railroad 
ties,  1  cent  each;  lumber,  30  cents  ])er  M.;  hop  poles,  $2  per  M.;  timber,  $4.50  per 
M.  cubic  feet ,  barrel  staves  and  headings,  40  cents  ])er  M. ;  j>ipe  staves,  .tl..')0  i)er  M. ; 
West  India  staves  and  headings,  75  cents  per  M. ;  grain,  (lour,  iron,  meat,  vegeta- 
bles, 20  cents  per  ton ;  all  other  agricultural  jtroducts,  20  cents  per  ton;  all  nou- 
enumerated  articles,  20  <!ents  per  ton. 

This  discrimination  is  not  against  American  vessels  but  against  American  com- 
merce and  American  routes. 

My  authority  for  saying  that  tolls  are  refunded  at  Kingston  upon   merchandise 
going  through  to  Montreal  by  other  conveyance  than  the  vessel  which   brought  it 
through  the  canal,  is  iufornuition  from  masters  and  vessel  owners.     I  inclosii  a  copy 
of  (Janadian  circular  relating  to  refund  of  tolls  at  Montreal. 
I  am,  etc., 

H.  H.  Lyman, 
-  Colleetor. 

P.  S. — As  furnishing  you  some  further  information  I  also  inclose  you  copies  of 
letters  of  the  collector  of  this  port  to  Commissioner  of  Navigation  ui)on  this  ques- 
tion, dated  .Julv  15,  1888,  and  September  11,  1889. 


3ii 


RECIl'ItOCAL    TRADE    WITH    CANADA. 


I 


|4 


Collector  of  CiislomHat  Onwefip  to  Commissioner  of  Cimtoma,  WfHihingtov,  D.  C. 

CisTOM-Morsi:,  Oswkgo,  N.  Y., 

Col.mxtok's  Oi'iirK.  ./(//.(/  /o,  .1S8S. 

Sili:  K<'lati!i;>   to  yoiii    (•omiiiuiiicittioii  of  .)iine  13,   18!jM,   '"T.  15.  ^^.."  I  have  the 
honor  to  Htate  thni  tlie  (iinadiiiii  (i«)veriinifiit  liaH  issued  order;*  to  ccdleet  tlie  same 
tolls  OH  v(!SHe]s  passing  thi'oiigli  the  Wellaiid  C^anal  during  the  jneseiit  season  of 
navigation  as  were  charged  last   year,  namely.  -0  cents  ])er  ton  of  grain.  2i  eeiit.s 
per  1  <'i>;isteve(l  ton  of  vessel. 

I  wcuJd  also  state  that  tlie  above  tolht  are  remitted  if  tlu'  cargo  is  exjiorted  via 
the  St.  I,awrenee  jfiver.  Ily  this  rebate  a  cargo  of  ;^5.(HK)  r)nsliels  of  grain  can  be 
♦ieiiveretl  at  ( >swego  for  e\)toi'i  via  the  Oswego  and  Krie  canals. 

I  would  furtlier  state  that  tiie(  anadiau  papers  during  the  past  winter  rei)eatedly 
acknowh'dged  that  the  granting  of  the  aliove  reltate  "as  a  \ioiation  of  tiie  spirit  of 
the  tieaty  of  W  asjiington.  'Iln-  (lanadian  (iovcriiinenl .  intiieorder  issued,  exhibited 
the  weakness  of  their  position  bystating  "  tliat  the  rebate  w.nild  be  granted  this  year 
only." 

If  the  Canadian  (Jovernnient  is  justitied  in  granting  the  altove  reliate,  thus  dis- 
criminating ag.ainst  our  waterways  ami  ports;  tiien  the  United  States  (iovernmeut 
is  Ju8tili<'d  in  collecting  tin-  same  rate  of  tolls  as  ilu-  above,  from  all  vessels  (Canadian 
and  American)  andtlieir  cargoes jtaasiii^  through  tlie  .^saultSte.  Marie  Canal,  provided 
the  grain  is  exjiorltMl  via  tlie  St.  Lawrence  River  (there  are  no  American  vessels  in 
this  trade)  and  allowing  a  like  reltate  at  the  American  i)orts.  ])rovi<led  the  gr.iin  is 
exported  by  the  Krie  or  Oswego  and  Erie  canals,  or  by  railroad. 
Respectfully  yours, 

1.    B     FolCIIKR, 

Collector, 


Collector  of  (KStims  at  Oswego,  X.  >'.,  to  Conimhsioiier  of  Xarhfafion,  Washington: 

Cu-SToM-MoLsi;,  OswKGo,  X.  v., 
Collector's  Office.  Septemb^i-  11.  1SS9. 

Sik:  In  answer  to  yours  of  September  4.  188!',  asking  what,  if  any,  discrimination 
is  made  against  vessels  of  the  I'nited  States  in  the  matter  of  fees  in  i)assing  the 
Welland  (^anal,  1  have  caused  inrpiiry  to  be  nuide  among  our  masters  and  vessel- 
owners.  They  al!  report  that  so  far  as  they  know  they  get  same  facilities  and  pay 
same  towing  and  fees  as  Canadfan  vessels*  'I'he  only  <li8!Timiuation  they  report  is 
in  favor  of  the  Canadian  route,  viz:  Vessels  with  cargo  destined  for  export  via  St. 
Lawreine  get  rebate  of  their  ev.tire  canal  tolls  at  Kingston,  Ontario,  t>r  if  for  Mon- 
treal jjct  rebate  at  Montreal. 

T  will  take  occasion  to  make  further  inquiry  and  will  report  to  yon  if  I  learn  any- 
thing further  or  different  from  w  hat  is  above  stated. 
Very  resjiectfully  yours, 

11.    II.    LVMAN', 

Collector, 


The  following  regulations,  from  a  circular  understood  to  have  issued  undei- jiuthor- 
ity  of  the  (Janadi.in  (Jovernment,  relate  to  a  refund  at  Montreal  of  tolls  i)ai<l : 

"All  goods  having  jiaid  full  toll  through  the  wlude  line  of  the  St.  liawreuoe 
canals,  or  tiirough  the  Machine  CJanal,  St.  Ann's  liock.  or  Ottawa  and  Ridean  canals, 
shall  be  aIlowe»l  to  i>asrt  free  through  the  Welland  Canal;  and,  if  tolls  have  been 
paid  at  the  Ciiamby  Canal,  such  tolls  shull  be  refunded  at  .Montreal  or  Kingi'toii 
Mills;  !ind,  havirig  ]iaid  full  tolls  through  the  Welland  Canal,  they  shall  be  aUowed 
to  ]iass  free  through  the  St.  Lawrence  canals  or  tiirough  the  Ottawa  and  Kideau 
cainils,  St.  Ann's  Lock,  the  Lachiiie  Canal,  and  the  Cliamliy  Canal;  provided, 
always,  that  the  j-rtides  to  he  entitled  to  the  above  e\()mi)tion  shall  go  downwa  ds 
Uiroiigh  the  whole  le-igth  of  the  SI.  Lawrence  canals  to  Lake  Ontario." 

H.  H.  L. 


*vi 


-'  CoMMITTKIi:   ON    RiVr.HS   ANIJ   HAIim)HH, 

Hof.HK   OK    RKPRKSKNTATIVI'S, 

Washington,  If.  C.,  I'elmiar\j  2,  189i. 
Dt:AK  Siu:   I'he  subject  of  the  inijiosition  of  tolls  on  .American  iMunmer<  e,  or  coui- 
merce  deHtined  for  American  ports,  going  through  the  Weilaiul  Cainil,  i)y  tlie  0<»v- 


RECIPROCAL  TRADK  WITH  CANADA. 


37 


eminent  of  the  l^oniiiiion  of  Caniula,  was  recently  tlie  snbjoi't  of  discnssioii  Dy  tlie 
Rivt'i'and  Iliiibor  Conuriittt'c  of  th'!  Houhc. 

In  tlu-  fall  of  1S!(1  a  conferencci  l)',t\\"t'(Mi  comtnissioners  a]>|ioiiit)Ml  by  the  (tovci-u- 
nieut  of  the  Koniiiiio!  of  Cana<la  and  rejjrest'nlativcs  of  oiii<iovt'iiiiiH-nt,  to  consider 
the  st.bjcct  of  r('cij>i-oial  trade  relations  between  Canada  and  the  Cnited  States,  was 
to  liiive  been  held,  and  )»rol)ably  was  held.  On  Septenilter  l*^  the  Lake  CariiiTs' 
Association  bronijht  to  your  nifention  tlie  siil)Ject  of  lolls  cliar^jed  ajuainst  Anu^rican 
commerce  jroimi'  throiijfli  tiie  \V(dlainl  Canal,  and  requested  your  j^ood  olhees  in 
brinjuinu,'  liie  same  to  the  att<'ntior.  of  the  confereiK  <•  aforesat  '  with  the  view  of 
secnrinj;  action  necessary  to  carry  out  the  intent,  purpose,  and  ..pirit  of  the  twenty- 
eeveiith  article  of  the  treaty  b<  t ween  (ilea t  Itritain  and  the  I  nited  Staters,  bearing 
date  .May  S.  ?M71,  and  kiiowu  as  "The  Treaty  of  Washin^xtoii." 

Will  yon  kindly  inform  the  ■  oinmittee  ii'any  action  was  taken  at  the  saitl  confer- 
ence, or  since  then,  looking;  to  the  fri-e  list;  of  Canadian  caijals  by  <oniinerce  de«- 
tined  to  thi;  ports  of  th<'  I'nitcd  Strtes? 

The  Committee  would  also  ajipreciate  information  from  you  as  to  w hether  there  ia 
anythinjj  in  existing  tfeatics  between  Great  Uritain  and  the  I'lnted  States  which 
would  prevent  the  imposition  ot  tolls  by  thi'  ''nited  States  ujxm  <'ommerce  destined 
for  Canadian  ports,  nsinn',  or  jioini;-  throuii;li  the  St.  Clair  flats  Ship  Canal,  or  the 
canal  and  lock  at  the  Saiilt  Ste.  Marie,  in  ii-taliation  for  t<dls  imi>osed  at  the 
Wellaud  Canal,  should  the  (•overninent  of  tin;  Dominion  of  Canada  fail  to  recog- 
nize its  id)li<ratiou  growin^L!,'  out  of  the  twenty  seventh  (27th)  article  of  the  "Treaty 
of  Wasliington.'' 

You  will  observe  that  w'hile  the  St.  Clair  Kluts  Canal  is  mentioned  in  the  aforesaid 
article  of  the  -'Treaty  of  Washington,"  the  canal  and  lock  at  the  Saiilt  Ste.  Marie  is 
not  mentioned. 

Your.s  truly, 

X.    C.    1{I,AN(  llAltn, 

Chairman. 
Hon.  .Iamks  (;.   Mi.AtNi;, 

Sciretarif  of  Stt,fr,  ff'aHliiiifiloii,  It.  ('. 


•     \ 


LaKK  CaRI!IKI!s'  AssfiriATio.v, 
lUiffalo.  S.  v..  nhr.Kini  IJ.  )S93. 
SiK:  I'^rmit  me  to  call  the  attention  of  your  Dejiartment  to  the  letter  of  the  Lake 
Carriers'  Association  to  yourself  bearing  date  September  IS.  1K!I'.,  ndative  to  tlie 
discriminating  tolls  now  in  force  on  the  Welland  Can.'il,  and  the  viobition  on  the 
part  of  the  tJanadian  government  of  the  pro  visicms  of  the  twenty-seventh  article  of  the 
treaty  of  May  8,  1871.  The  letter  above  referred  to  contains  a  full  statement  of  the 
facts  in  this  matter  and  exiiresses  tlu'  I'arnest  hope  of  the  entire  vessel-owning  inter- 
est on  the  (ireat  Lakes  that  the  State  Department  will  make  this  violation  of  the 
treaty  one  id'  the  subjects  to  be  considered  at  the  conference  on  reciprocal  trade 
relatiims  betwi^en  r(;|n'esentatives  of  the  goverrments  of  Canada  and  of  the  United 
States.  Till'  respectful  ie(|ue8t  ot  the  Lake  Carriers'  Association,  as  contained  in  the 
letter  of  .September  \X.  ISftl,  has  also  been  expressed  by  many  important  commercial 
organi/alions.  boards  of  trade,  etc.,  on  the  (ireat  Lakes. 

Moping  tiiat  the  State  Department  will  give  this  important  matter  the  attention 
which  we  think  it  deserves,  we  renniin, 
Very  respectfully  yours, 

Laki-; 
Hy  C.   H. 
Hon.  .Iamk.k  (i.   llLAiNi;, 

(Secretary  of  statr,  tf'dHhiii'jIdii,  D.  (\ 


CAKIMK.It.s'    ASStM'IATlON, 


Dki'ai!Tmi:m  (»k  Stati;, 
ll'nxlihifiton,  I  ihruiirii  l'>,  1892. 

Km:  I  have  the  honor  to  acknowledge  receipt  ol' your  letter  oi' the  lid  instant, 
relative  to  the  diHcriniination  of  the  Canadian  government  against  American  citi- 
zens in  the  use  of  the  Welland  Canal. 

On  the  IHth  of  September.  ISiU.  the  Lake  Carriers'  Association  presented  to  this 
Department  a  memorial  regarding  this  matter,  and  the  subject  was  fiilb   presented 


toSir.lulian  I'anucefole.  Her  Mritannii   M.ijestv's  Ministei  at  this  city, 


the   IDth 


>f  Octolier   folliiw  ing,     No   formal   reply  thereto   has   been   n>cei\ed  beyond   an    ae» 
knowle<lgment  <d'  the  receipt  of   the   Department's  mite  and  a  statement  by    Sir 


M 


il 


38 


RECIPROCAL  TRADE  WITH  CANADA. 


Julian  tliar.  it  had  been  refeiiod  to  his  (ioveinmont.  Tiio  matter  has  boon  brought 
to  tile  attention  of  th(^  (,'iinadian  Comniissioui'iN  now  in  tltis  city  and  an  assurance 
given  to  them  tliat  The  eoni|daint  which  we  liave  i)reterre(l  sliall  have  caretnl  and 
prompt  consideraticMi,  with  a  view  to  a  faithful  ol>.sevvane»;  of  the  treaty  .itijinlatiou. 
K(^i;lying  to  your  furtlier  inquiry  I  would  say  thai  the  only  treaty  stii»ulafiou  in 
foree  ap]dicable  to  the  use  by  American  and  Canadian  citizens  of  the  canals  ecui- 
nected  with  the  (heat  Lakes  ami  the  St  Lawrene*-  River  is  contained  in  thetweuty- 
sevtuith  arti<le  of  tlu^  treaty  of  Wasiiington.  and  is  clearly  intended  to  be  reciprocal 
in  character. 

I  have  the  honor  to  be,  sir,  your  (dtedient  servant, 

James  (>.  Hlaink. 
Hon.  N.  C  Rlanchaui). 

Chairman  Committev  on  Rirer  and  Harbom, 

House  of  lieprettentatives. 


Mr.  Pni/ni:  to  Mr.  lilainv. 

Ariuux,  \.  v.,  Februarii  ni,  1S92.     (Received  February  29.) 

Dkak  Sik:  I  inclose  herewith  a  letter  I'rom.ludgt;  Churelihill.  ofOswego,  N.  V.,  iu 
reference  to  the  treaty  ol'  Washington  and  the  discrimination  miide  by  the  Canadian 
governnu'ut  against  American  ]>orts. 

His  letter  will  bejir  careful  ]n^ruHal,  as  he  ])re8euts  some   im))ortant  views  on  this 
subject.     It  is  also  very  timely   in   connection  with   the   jierdiug   negotiatifins  for 
reciprocity  between  the  Canadian  government  ami  ours. 
Yours,  verv  trnlv, 

S.  K.  Paynk. 


I  Inclosmc  with  Mr.  Payiie'.s  letter  of  Fcliniary  10,  1892.) 

O.sWKUO,  N.  \ .,  February  12,  1892. 

My  DKAit  Siu:  The  j)reseiice  of  the  representatives  of  Canada  in  Washington 
seems  to  prestMit  a  good  opportunity  to  have  the  (|ueRtion  ofWelland  (anal  tolls 
considered.  I  ol)serve  recipi-ocity  in  other  directions  is  to  be  discuHse<l,  but  no  ref- 
eroiu'e  to  reciprocity  in  tiie  use  (d' canals.  This  is  a  matter  of  great  importance  to 
Oswego  and  Ogdeiisburg  in  jiarticiilar  and  indeed  to  all  Lake  Ontario  ports. 

As  1  understand  the  treaty  <d"  Washington  (ratilied  .June  17.  1H71),  it  ))rovide8 
(arti(de  27)  that  the  liritish  (Jovtunment  should  urge  npou  the  Dominion  of  (lanada 
to  secure  to  the;  citizens  of  the  I'nited  States  the  use  of  the  Welland  and  St.  Law- 
rence canals  on  terms  of  e(|uality  with  the  inhabitants  of  the  Dominion  and  that  the 
United  States  (joverninont  should  allow  the  suiijects  of  (Ireat  Ihitain  to  use  the  St. 
Clair  Flats  Canal  on  tiMins  of  e((uality  with  our  own  ]>eople.  an<l  would  urge  ujion  the 
State  governments  to  secure  to  Ihitish  snlijects  the  use  of  tiic  State  canals  on  terms 
of  equality  with  our  own  people.  The  only  caual  the  right  to  use  which  was  given 
by  that  treaty  was  tlu'  St.  Clair  Flats  Canal,  which  the  people  <d"  Canada  have  always 
used  on  the  same  terms  as  our  own  people. 

As  to  our  New  York  State  canals,  which  are  this  only  canals  proliably  thought  of 
in  making  the  treaty,  the  tolls  on  those  canals  soon  after  the  ratilication  of  the  treaty 
were  reduced  to  an  ajiioiint  siitHcient  to  maintain  the  canals,  and  in  1HK2  by  a Con- 
stitutiouai  amendment  all  tolls  were  removed  and  the  maintenan<!e  of  the  canals 
reciuired  to  be  provided  for  by  a  direct  fax.  The  benetit  of  these  changes  were 
allowed  to  the  ])eoj)ie  of  Canada,  as  well  as  to  our  own,  since  the  products  of  Canada 
as  well  as  of  th<>  I'liited  States  are  carried  free  of  toll  to  market. 

The  tolls  (Ml  the  \VoIlan<l  and  St.  Lawrence  canals  have  been  maintained  unchanged 
and  are  collected  equally  from  Ai.ierican  and  Canadian  vessels,  but  for  some  years 
past  have  Jieen  refunded  to  sncii  vessels  (whether  Canadian  or  American)  as  iinloiwl 
at  Canadian  ports,  liy  this  a  great  advantage  is  given  Montreal  which  is  annually 
increasjiig  its  western  trade.  This  probably  is  not  an  infringement  of  the  treaty, 
but  it  is  a  discriminatien  against  ns  which  we  have  a  right  to  take  into  ac<'ount  in 
deterinining  our  action  as  to  other  mattera  outside  the  treaty. 

Yon  will  observe  the  .St.  (Jlair  Flats  Canal  is  the  only  American  work  the  use  of 
which  l>y  the  treaty  is  secured  to  Hritish  subjefits.  The  Saiilt  Ste.  Marie  Canal,  the 
only  navigable  conni'cticui  between  Lake  Superior  and  tlu'  lower  lakes  and  which  is 
in  large  and  daily  use  by  Canadian  vessels,  as  I  had  an  opjiortunity  to  observe  a 
year  ago  last  summer,  and  the  Hay  Lake  ('hannel,  which  is  an  American  ihanuel, 
shortening  by  several  miles  the  juwsage  from  Sault  Ste.  Marie  to  liake  Huron  with 
deeper  water,  are  not  mentioned. 

But,  though  not  mentioned  in  the  treaty,  Cauadian  vessels  are  using  the  Sault 


I 


RECIPROCAL  TRADE  WITH  CANADA. 


39 


' 


Canal  iwd  all  the  expensive  improvementfl  made  by  our  Government  without  charge 
and  without  any  return  whatever. 

The  treaty,  so  far  aa  I  can  judge,  does  not  forbid  the  imposition  by  Congress  of  tolls 
upon  the  Candian  vessels  passing  the  Sault8te.  Marie  Canal.  If  such  a  bill  were  in- 
troduced next  Monday,  while  the  Caaadian  rcpresei'tatives  are  yet  in  Washington, 
it  would  be  sure  to  attract  their  attention  and  probably  make  canal  reciprocity  one 
of  the  subjects  of  conference  l)etween  t'lem  and  our  (lovernmcnt.  If  believed  likely 
to  pass,  it  would  prol)ahly  lead  the  (,'aiuidian  (Tovernmei)t  to  make  Welland  Canal 
free  to  our  vessels. 

Gen.  Curtis's  district,  as  well  as  yours,  is  much  interested  in  a  free  Welland  Canal, 
and  I  have  no  doubt  the  General  would  be  glad  to  cooperate  witli  you  in  any  way 
in  the  matter. 

Would  it  not  be  well  for  you  and  the  (icn»n'al  to  see  Mr.  lUaiiie  and  see  whether 
anything  can  be  don;'  through  his  Departnientf  If  notliing  mn  be  done,  then, 
unless  yon  see  some  obje<;tion  under  tlie  treaty  to  a  law  imposing  tolls  on  Canadian 
vessels  p.-issing  tiic  Sault,  which  I  do  not,  I  believe  the  introdiU'tion  and  pa.s.sage 
of  such  a  law  as  suggested  would  be  just  in  itself  and  would  be  ])roductive  of  valu- 
able results.  If  introduced  its])as8agc  wouM  very  likely  iie  rendered  unnecessary  by 
the  Canadian  Government  hastening  to  make  the  Welland  Canal  free. 
Yours  very  truly, 

JOMS   C.    CHIKCHILL. 

P.  S.— If  the  Welland  Canal  were  made  free  it  would  give  immediate  relief  to 
American  commerce  on  Lake  Ontario,  )nit  it  would  not  obviate  the  necessity  of  a 
canal  around  the  Falls  of  Niagara.  lo  will  take  .s  me  years  to  build  that  canal,  if 
begun  to-morrow,  and  meanwhile  every  port  on  the  south  shore  itf  Lake  Ontario, 
from  Charlotte  to  Ogdensburg,  would  be  beiu?fited. 


/ 

0 


1 

1% 


■A 


Office  oi    Lakk  Cai!H1ki!s'  Association, 

liufalo,  \.  v.,  March  11,  1802. 

DkakSik:  Answering  your  request  for  tignres  showing  the  amount  of  discrimi- 
nating tolls  exacted  at  the  Welland  Canal  (luring  the  season  of  1891,  1  ..tvc  the  fol- 
lowing figures  covering  the  tralHc  reaching  the  port  of  Ogdensburg,  N.  V.,  by  water 
via  the  Welland  Canal  in  1H91 : 

Total  tolls  paid  on  all  tratlic  reaching  Ogdensburg  via  Welland  C.auiil  in  1891, 
$5.5,037.05. 

TotiiT  tolls  which  would  have  been  exacted  on  the  same  tratlic  had  it  been  con- 
signei^  to  Montreal  or  any  port  east  of  Montreal.  )»rovided  it  had  gone  thidugh  with- 
out breaking  liulk  or  been  transferred   it  an  intermediate  Canadian  pent,  if'7, 360.94. 

Amount  of  toll  collected  as  a  discrinnnation  against  an  \mcricaii  p(Ut,  ^47,()76.ll. 

In  addition  to  the  above,  tolls  to  the  iiimmnt  of  $."),719..")ti  were  collected  on  grain 
which  reached  (Jgdensburg  \  in  the  Wellnnd  Canal,  was  there  tninsferred  and  for- 
warded to  Montreal.  This  grain  ])aid  full  Wcllinul  Canal  t<dls  of  20  cents  a  ton 
without  getting  th<'  refund.  It  was  also  refused  the  jia-ss  tickets  ordinarily  given 
at  tlie  Welland  Canal  on  trattic  bound  thiough  the  St.  Lawrt  ■  e  canals,  which 
tickets  permit  free  ])aHsage  through  the  St.  Lawrence  cauids.  'l"li  i;rain  in  (|uestiou 
not  only  paid  full  toll  at  the  Welland,  but  wjis  oliliged  to  jiay  full  t<dl  thnnigh  the 
St.  Lawrence  canals  also. 

Total  <liscriniiniition  iigninst  Ogdcnsbuig  tratlic  for  1891,  .'l).">3.;{9."t.l)7. 

I  notice  several  new8]»a])er  items  of  late,  purporting  to  <'ome  from  Ottawa,  Ontario, 
to  the  ert'ect  that  the  Ciinadiau  government  is  to  make  some  conc^'ssions  in  toll  nnit- 
ters.  These  dis])iitches  indicite.  howev«'i'.  that  tlu'  only  concession  whit'li  the 
authorities  have  in  mind  is  with  regard  to  the  ports  of  transfer.  Vou  will  remember 
that  last  year  the  refund  on  grain  ciirgocs  passing  throngh  the  Welland  Canal  and 
transferred  to  river  barges  for  .Montreal  at  some  intcrmctliate  pnint  \\  as  only  allowed 
in  case  the  trans.shipuient  took  plaie  at  a  Canadian  port,  and  was  refused  where 
such  transsliii>ment  took  place  .it  an  .Vmerican  |iort,  like  (►gdcnsburg.  The  press 
dispat<hes  indicate  that  the  Canadian  authoiitics  will  this  ycarpernnt  tiie  refund 
on  Montreal  trafWc,  even  though  the  transshi|iiri"ut  takes  place  at  an  American  port. 
Doubtless  this  will  be  o<"  some  benefit  to  Ogdensburg,  but  it  will  leave  unt'unhed 
the  principal  |>oint  at  issue  which  cmnerns  the  right  ..f  tl'e  Canadian  .uitliorities  to 
refund  nine-tentns  of  iHe  cargo  tolls  on  Montreal  tratlic  whib  no  refund  is  made  in 
the  case  of  tratlic  (»♦  the  same  character  passing  through  the  canal  in  the  same 
direction,  and  bound  for  an  Ann  rican  port  on  route  of  ex))ort. 
Yours,  very  respectfully, 

9  C.  H    Kbbp, 

Secretari)  Lake  Canlir>    .iHsovitftton. 

Hon.  Wm.  F.  Whakton, 

Firitt  Anthtant  Seeretat'f,  of  Sfate,  Washington,  IJ.  C. 


40 


RECIPROCAL  TRADE  WITH  CANADA. 

[Oayloril,  Downey  &  Co.  couiminsion  and  sliipping  merchants. 


Oswego,  N.  Y.,  April  o,  1S93. 

Sir:  Notwitlistaiuliiig  the  promises  made  by  the  Canadian  ministers  to  you  to  the 
contrary,  we  understand  that  an  order  in  council  has  just  been  issued  continuing 
the  discrimination  ajiainst  this  cftuntry  by  Cauaila.  Our  board  of  trade  sent  you 
resolutions  recently  setting  fortli  the  nature  of  the  discrimination,  the  elt'ect  oi'  which 
is  to  drive  the  carrying  trade  ironi  Tnited  States  ])orts  on  Lake  Ontario  to  Canadian 
ports  and  routes. 

Can  not  something  be  done  to  stoji  this  unfair  treatment  f  Why  can  not  this  coun- 
try levy  a  toll  upon  all  vessels  passing  through  the  "  Soo  "  Canal,  and  rebate  the 
same  if  unloaded  at  an  American  ))ort.  We  are  of  the  opinifui  tliat  such  a  course  as 
this,  if  consistent  with  existing  treaties,  would  bring  the  Canadians  to  terms  ([uite 
}irom]>tly. 

Awaiting  your  reply,  we  are,  sir,  yours,  I'espectfully, 

'  GaYF-OI!!),    Dowxky  &   Co. 

Hon.  .Jamks  G.   Blaink, 

Secretary  of  Stafe,  WuxhiiKjtov,  I),  C, 


'■}     ■ 


OSWKOO   RoARU   OF  TRA1>K, 

•  (hiveno,  X.  v.,  April  ■',,  189:3. 

Sir:  On  the  L'4tli  <'  y  r»f  November  last  our  board  ])assed  resolutions,  which  were 
at  that  time  transnutti'<l  to  you.  setting  forth  tlie  disi-riminntions  wiiicii  have  here- 
tofore been  practiced  by  the  Douiinion  of  Canada  against  citi/.(-'ns  of  the  United 
States  in  respect  to  tonnage  ]>assing  through  the  Welhiud  Canal,  and  which  is  a 
direct  violation  ol'tiie  spirit  of  tliti  treaty  of  Washington. 

We  uiulerstand  that  at  the  reicut  ciuiference  held  in  W  shington  between  your 
honoralile  self  and  the  Canadian  ministers  that  tliis  nuestion  was  br(iuy;iit  up,  and 
that  the  Canadians  agncd  t(»  remove  the  tolls,  or,  in  other  words,  that  they  would 
not  discriminate  against  the  rnitcd  States. 

We  also  understand  that  an  orde.'  in  couiic'l  has  just  been  issued  granting  a  re- 
bate ot'  IS  cents  a  ton  on  :ill  grain  passing  through  the  W'olland  Canal  and  St.  Law- 
rence canals  through  to  Montreal  this  season  tlie  same  as  last  year.  Transshiimient 
will  li.  iiermitted  at  Kingston,  but  will  not  be  allowi'd  at  Oswego.  Ogdensbuig,  or 
any  other  American  pi.rt.  For  grain  latided  at  any  jiort  west  ()f  Montreal,  uidess 
for  transshipnuiit  at  Kingston,  the  full  rate  of  toll,  namely,  L'O  cents  a  ton,  will  be 
exacted. 

You  will  at  once  .see  by  this  that  the  (■anadians  have  .igain  shown  l»ad  faith, 
and  we  now  write  you  to  ask  if  something  can  not  be  doiu-  in  the  way  of  retalia- 
tion, and  we  venture  to  suggest  that  Canada  could  lie  brought  to  terms  in  this  re- 
spect in  very  short  order  if  the  Cnited  States  would  at  once  discriminate  against 
Canada  in  regard  to  freight  jiassing  through  (Uir  "Soo"  Canal,  and  wliich  is  now 
largely  used  Ity  Canadian  vessels. 

Awaiting  your  early  reply,  I  am,  sir,  yours,  respectfully. 

1>.  M.  Jkwin,  /Ve«tdcti<. 

Hon.  .James  (i.  Mi. aim:, 

SecrcUirji of  stall ,   fVanliiiu/loii,  1).  C, 


fi 


lOtUce  01' Max  li.  KicliurdHou,  real  estate.) 

Of>.\\VAM^,'S.\.,  April  5,  tS9.'. 

Sir:  Inclosed  I  send  you  a  newspajjer  clipping  which  puri»ort+>  to  be  n  re|)ort  of 
the  decision  arriveil  at  bv  the  Canadian  government  in  regard  to  the  use  of  the 
Wellnnd  and  St.  Lawrence  canals  for  the  season  of  1892.  .\s  you  are  doubtless 
aware,  the  reliale  made  by  the  Canailiau  government  is  in  direct  violation  of  the  pro- 
visions of  the  'I'reaty  of  Washington,  so-calle<L  wherein  the  Canadian  government 
agree<l  to  allow  our  (loveriiment  the  same  privileges  and  rights,  in  relati<ni  to  the 
use  (»f  the  Wellaud  Canal,  as  was  enjoyed  by  their  own  government. 

The  violation  of  the  provisions  of  said  treaty  c(»nsists  in  a  reluiti-  by  the  Canadian 
government  of  tolls  paid  upon  cargoes  consigned  to  Montreal  and  ports  east  of  M<»u- 
treal,  which  reltate  is  not  nuule  upon  cargiies  c<»n8igned  to  American  ports.  There- 
fore the  Canadian  governnuuit  is  violating  the  conditions  of  said  treaty. 

The  attention  of  (uir  (■(ivernment  has  been  repeatedly  called  to  this  matter.    Presi- 


RECIPRO(JAL   TRADE   WITH    CANADA. 


41 


n 


dent  Cleveland,  in  one  of  his  niesHages,  particularly  referred  to  this  subject,  and  rec- 
ommended to  Congress  the  adoptitm  of  a  policy  of  retaliation. 

As  ;n  Ameri(!au  citizen  of  the  United  States,  I  desire  to  protest  against  this  open 
violation  of  the  sacre<l  treaty,  and  suggest  that,  if  jtossible  and  practicahh',  our 
Government  inunetliatelv,  in  order  that  it  may  aftcct  connnerie  for  the  season  of 
1892,  impose  tolls  upon  the  shipping  o\vn<'d  by  citizens  of  the  (.'anadian  government 
for  passage  tlirough  tljt^  St.  Mary's  and  other  canals  owned  by  our  (government. 

Believing  and  trusting  in  your   ability    to     visely   and  Justly  »b»al  with  this  im- 
portant matter  as  the  circ^umstaiices  of  the  case  re<|uire,  I  am,    ■  I 
Kespectfully,  yours. 

Max  H.  Rk'hardsox. 

Hon.  .Iamk.s  (i.  Bi.Aixi:,  Secretarij  of  State,  Wunhinfiton,  I).  (\ 


IClippiiig- 


OFi'K'K  OK  I'i'.NFii'.i.i),  Lyon  &  Co., 

Oxwcgn,  y.  r.,  April  6,  1892. 

Dkar  Sir:  We  venture  again  to  present  to  the  notice  of  tlie  Deiiartment  (tf  State 
the  niiitter  of  discrinunation  by  the  Canailiiin  government  against  American  com- 
merce in  the  exaction  <d' tolls  for  |)assiiL;e  through  the  Welland  Canal. 

Our  understanding  of  the  spirit  and  iiit(>nt  of  existing  treaty  is  that  the  citizens- 
of  the  IJuitcd  ?^tates  and  Canada  shall  each  enjoy  the  same  freedom  in  use  of  the 
canals  in  both  e<uintries  as  do  tlie  citizens  of  either  in  their  own. 

For  several  years,  while  the  Canadians  have  used  extensively  w  ithout  tolls  and 
with  jxrrfect  freedom  the  Sanlt  Stc.  Marie  and  St.  Clair  camils  and  the  costly  sys- 
tem of  canals  in  the  State  of  New  York,  the  only  Canadian  canal  whic  h  our  citizens 
have  occasion  to  use  to  any  extent  is  closed  to  our  conuiier<'e,  ex<;epl  under  l>urden 
of  tolls  from  which  the  traffic  of  Lower  Canada  and  for  exjHut  via  Montreal  is  re- 
lievetl. 

The  unjust  ditfercMice  has  for  several  years  Imuiu'  so  h(>avily  cm  very  extensive 
conunercial  and  industrial  interests  on  and  near  the  l)ordcr — from  Niagara  l'"alls  to 
Maiut* — as  to  exhaust  iiuiuy  and  bring  mon-  to  the  verge  of  utter  ruin.  Such  as 
have  been  l«'pt  alive  in  the  hope  of  eliauge  in  the  Canailian  jxdicy  are  now  in 
desi»air  because  of  the  repcu't  of  the  reiiuposititui  of  the  diserimimiting  ti>lls  by  the 
Canadian  authuriti(;s  in  council. 

We  a-sk  if  it  is  within  the  ])owcr  and  consistent  with  the  iiu'lination  of  your 
Departmtuit  to  do  anytliing  to  protect  or  ndicve  these  important  interests  fnun  the 
burden  of  this  arbitrary  and  unfair  ruling. 

We  are,  very  respectfully,  your  obedient  servants, 

PknkikLi),  Lyon  &  Cc. 

Hon.  .James  (1.  JJi.aink,  Secrelnry  of  Statr,  W'ashiniflon,  D.  C. 


OsWEiJO  Vessef.  Owskus'  Association, 

(Jmrei/o,  X.  i'.,  April  <1,  189i. 

Sir:  Inclosed  you  will  liud  dipping  which  speaks  for  itself.  It  is  very  unjust  the 
manner  in  which  tiie  Canadian  government  is  treating  us  regarding  this  matter  of 
tolls.  'F'his  discrimination  has  driven  the  trade  from  Cnited  States  ]»oils  on  Lake 
Ontario  to  Canadian  ports,  an«l  instead  of  American  grain  going  via  the  Krie  Canal 
to  New  York,  and  thenci-  to  Europe,  it  goes  via  the  St.  Lawrence  to  M(mtreal. 

If  the  same  tolls,  that  is,  20  cents  per  ton,  were  levied  on  all  Canadian  cargoes, 
passing  through  our  "  Soo"  Canal,  there  is  no  doubt  the  Canadian  government  would 


.   42 


RECIPROCAL  TRADE  WITH  CANADA. 


in  a  very  short  time  give  us  a  free  Welland  Canal,  which  we  should  have.     Could 
not  our  (iovcrninent  impose  such  a  toll  on  the  "Soo"  Canal,  and  insist  on  the  Cana- 
dians treatiujj  us  fairly  ?     I  assure  you  it  is  a  very  great  hardship  for  our  vessels  to 
continue  paying  exjieuses  with  this  discrimination  against  thf  ai. 
Trusting  you  can  relieve  us  of  this  lieavy  burden,  I  am  sir,  respectfully  yours, 

M.  J.  CuMMiNGS,  Prebident. 
Hon.  Jamks  (t.  Blaink, 

>Sevretarii  of  State,  Washington,  1).  C. 


It 


liefuac  to  Come  Down, — The  Dominion  Government  will  Continue  to  Discriminate. 

Ottama,  April  4, 
The  government  has  decided  to  gnint  a  rebate  of  18  cents  per  ton  on  all  grain 
passing  through  the  Welland  and  St.  Lawrence  canals  through  to  Montreal  this 
season,  the  same  as  last  year.  Transshipment  will  be  permitted  at  Kingston  and  not 
allowed  at  Ogdensburg  or  any  American  port.  For  grain  at  any  port  west  of  Mon- 
treal, unli«s  for  transshipment  at  Kingston,  the  full  rate  of  toll — 20  cents  per  ton — 
will  be  exacted.  Notwithstanding  the  recent  conference  with  Secretary  Blaine,  the 
Canadian  ministers  appear  determined  not  to  relax  the  course  they  have  followed 
with  regard  to  discrimination  against  United  States  ports.  , 


^ 


Om-vgo,  N.  Y.,  April  6,  189S. 

Sik:  I  regret  that  the  Canadian  government  has  issued  an  order  to  again  levy  a 
toll  of  18  cents  per  ton  on  all  grain  passing  through  the  Welland  Caniil  and  land- 
ing at  American  ports  on  Lake  Ontario,  and  also  20  cents  per  ton  on  all  coal,  salt, 
and  merchandise  going  West.  This  discrimination  against  American  shippers  and 
vessel  owners  is  very  unjust;  it  is  destroying  our  vessel  interests  on  Lake  Ontario, 
and  is  a  heavy  tax  on  tiic  Westward  shippers  of  coal  and  salt. 

-As  the  Canadian  peoide  have  the  free  use  of  our  Saiilt  Ste.  Marie  and  St.  Clair 
canals,  could  you  not  consistently  levy  the  same  toll  on  Canadian  vessels  passing 
through  these  canals  as  they  do  on  oiir  vessels  passing  through  the  Welland  Canal. 
I  inclose  you  herewith  a  clipping  in  which  a  prominent  Canadian  vessel  owner 
and  shipper  exprc^sses  his  views  on  this  subject.  It  is  also  the  opinion  of  a  great 
many  ot  the  Canadian  people  that  this  discrimination  against  us  is  entirrly  unjust 
and  unfair. 

Hoping  you  will  see  your  way  clear  to  secure  us  some  rel'3f  in  tliis  matter,  I 
remain,  sir, 

Respectfully  yours, 

ROBT.  DOWNKY,  Agent, 
Hon.  .Tames  TJ.  Blaink, 

Sevreturtj  of  State,  Washington,  D.  C. 


V 

•  -5 


( 


i 


[Clipping.] 

A  free  Welland  Canal — Letter  of  a  prominent  Canadian  vessel  oivner — Open  letter  to  the 

premier.  ■ 

Hon.  J.  J.  ('.  Ahbott,  Ottawa: 

Hon.  Sik:  During  the  past  few  days  your  government  has  been  waited  upon  by 
two  or  three  different  deputations  which  have  urged  upon  you  their  connictiug 
views  regarding  rebates  of  canal  tolls  on  grain  passing  through  the  Welland  Canal. 
The  American  canal  at  Sanlt  Ste.  Marie  and  their  canal  at  St.  (^'lair  are  free  to 
Canadians  and  Americans  alike.     Our  Welland  Canal  ought  to  be  free  too. 

Why  should  the  Anu^ricans  be  discriminated  against  in  our  canal,  while  they  treat 
us  so  fairly  in  theirs,  or  why  should  coal,  timber,  lumber,  and  other  goods  pay  canal 
tolls  and  grain  be  exempt!  ..  _h  ,, 

Yours  sincerely,  ■  _  ;         .       a    ,! 

:  ■-         "  ■    V  '   i        Hiram  A.  Calvin. 

Gakdkn  Island,  March  28. 


V 


w 

ir' 


i 


RECIPROCAL  TRADP:  WITH  CANADA. 


43 


Mr.  Calv'u  is  an  »,'xt«'iisive  liiiiil)t'r  Hhii>])t'r  ami  vcsst'l  owntsr  of  Canada,  and  Las 
always  bocn  a  stronjr  snj)|)()rt('r  of  tlie  Macdonald  ;ii<ivfrnnu'nt.  He  resides  in 
Kin^-ston  and  is  thoronjjhly  conversant  with  the  slii]»])iny  trade  of  Canada. 
Whether  lie  voices  the  sentiment  of  the,  majority  of  Canadians  we  can  not  say.  hnt 
tliat  his  arjfiimeut  aj)]iea]s  to  all  faii-minded  men  no  one  can  deny.  an<l  the  course 
he  advocati's  as  re;;arils  (anadian  camils  is  only  fair  anil  riichr  and  accordinji;  to  the 
spirit  of  the  treaty  of  \\ashiujj,ton.  This  conntry  tacitly  agreeil  to  throw  open  ;ill 
government  canals  totlie  nse  of  Canadians,  Imt  with  the  imdei'standing  that  Canada 
•would  treat  our  citizens  the  same  In  regard  to  her  government  canals,  which  she 
lias  never  done. 


A 

e 


^ 


..  r 


J 


V 


•V 

»• 


-  Oki'uk  of  Lakk  Carimkks' Association, 

Buffalo.  X.  v.,  April  l.'.\  183:2. 
Sir:  I  inclose  herewith,  for  the  inform.ition  ol'  the  Department,  a  clipping  from 
the  Marine  Record,  ])n))lished  at  Clevelanil,  Ohio,  ])nrporfing  to  give  verhatim  an 
order  Just  issued  by  tin;  Canadian  government  with  respect  to  tolls  and  ri'liates  on 
the  Welland  Canal  for  the  year  1892.  If  this  clipping  states  the  facts  (and  upon  its 
face  it  bears  evidence  of  its  authenticity)  yon  will  note  the  fact  that  the  Canadian 
government  has  in  no  way  moditied  its  practice  of  recent  years.  Cnder  the  order 
a.s  here  given  export  grain  which  ])as.ses  east-hound  through  the  Wellaiul  Canal,  and 
theuce  through  the  St.  Lawrence  canals  to  Montreal  or  .some  i)ort  east  of  .Montreal, 
is  granted  a  rebate,  which  reduces  the  tolls  lo  2  cents  per  ton,  while  the  same  arti- 
cles passing  through  the  Welland  Canal,  in  the  same  direction,  and  bound  to  <)g- 
densburg  for  export  by  an  American  route  of  exi>ort,  arc  oldiged  to  i>ay  tolls  of  20 
cents  per  ton.  Von  will  note,  also,  that  grain  jiassing  through  the  canal  and  botmd 
for  .Montre.al,  or  some  jtort  east  of  Montreal,  is  granted  the  reliate  if  transshipped  at 
an  intermediate  Canadian  port,  but  is  not  granted  the  reliate  if  transshipi>ed  at  an 
American  l>ort,  like  ()gdensl)nrg. 

Several  weeks  since  when  I  was  in  AN'.ishington  I  had  an  interview  on  this  sul>jecti 
with  Senator  Hoar,  who  is  a  nuMulter  of  the  ."Semite  ( Ommittee  on  Relations  with 
Canada.  Senator  Hoar  then  oH'cred  to  introduce  in  the  .Senate  ami  endeavor  to  pass 
through  that  body  a  l)ill  directing  the  Secretary  of  War  to  ascertain  whether  any 
discrimination  was  made  on  the  Welland  Canal  between  grain  or  other  merchandise 
bound  for  .Vmerican  ports  or  AiiMuican  routes  of  e.\))ort  and  the  same  articles  .v  heu 
bound  forCaiuidian  ports  orCanii<lian  routesof  exi)ort ;  ami  in  cas(>  suchdiscrimiua- 
tion  was  found  to  exist,  the  Secret.ary  of  War  was  diriMted  to  charge  ami  collect  at 
the  St.  .Mary's  Falls  Canal  and  the  St.  Clair  Flats  Canal  a  loll  ujioii  the  same  articles 
boinnl  for  Canadian  |)orts  or  Canadian  routes  of  exjiort,  which  tolls  should  bt;  equal 
in  amount  to  the  discrimination  now  made  at  the  Welland  Canal.  In  view  of  the 
fact  that  your  Department  had  at  the  conference  with  the  Canadian  commissioners 
brought  this  matter  to  the  attention  of  the  Canadian  authorities,  .md  that  you  were 
awjiiting  an  answer  from  them,  it  did  not  then  seem  ]>roper  to  introdnce  such  bill 
in  the  Si'uate.  'Ihe  bill  was  therefore  not  ])resented.  If  the  new  order  nuide  by  tlni 
Canadian  authorities  indicates,  as  it  wouhl  seem  that  it  must,  an  intention  on  their 
part  to  adhere  to  what  seems  a  clear  violation  both  of  the  spirit  and  the  letter  of  the 
27th  article  of  the  treaty  of  Washington,  I  woul<l  rcsi)ectfulJy  submit  to  your  Depart- 
ment whether  the  introduction  and  passage  f>f  a  bill  like  that  suggested  by  .Senator 
Hoar  would  not  be  a  pro|)er  step  in  securing  to  our  vessels  and  ports  tht>ir  .just 
rights.  So  far  as  the  vessel-owning  interests  on  the  lakes  are  concerned,  we  believe 
that  your  Departnu'iit  will  take  all  the  necessary  steps  to  .secure  to  us  any  rights  to 
which  you  think  we  are  justly  entitled  and  which  we  are  now  dejirived  of  by  the 
action  of  the  Canadian  government. 
Very  r<;8pectfully,  yours. 

Lakk  CARRiKfis'  Association, 
V,.   H.  Ki;ki',  Sfcrutarji. 
Hon.  W.M.  F.  WiiAUTON, 

First  Asaixtaut  Heeretary  of  State,  Washington,  D.  ('. 


„t-. 


Department  of  State, 

Washington,  June  6,  1S93. 
To  the  President  : 

In  the  report  whieh  was  subinittetl  to  you  on  X\m]  1/)  hist,  of  the 
confereiiees  hehl  at  tlie  Department  of  State  with  the  Canadian  eom- 
missioner.s,  it  is  stated  that  the  8ul)je<'t  of  the  rebate  made  in  the  tolls 
on  grain  carried  through  the  Canadian  canals  to  Montreal  and  shipped 


f^ 

■ 

i 

i  . 


m 


( 


44 


RECIPROCAL    TRADE    WTTH    CANAJ)A. 


therefrom  to  Europe  was  considered  in  the  confereiu-e,  and  that  it  was 
understood  tlie  Canadian  comnussioners  would  see  to  tlie  witlidrawal 
of  this  disciiniination. 

After  the  adjournment  of  the  conference  the  subject  was  again 
brouglit  to  tlie  attention  of  the  Canadian  (rovernment  through  the 
British  minister,  by  a  note  from  the  Acting  iSecretary  of  State,  dated 
March  17  last,  of  which  a  copy  is  inclosed,  but  no  r»'sponse  was  made 
thereto. 

On  the  4ti.  of  April  a  new  order  in  council  Avas  issued,  reihiacting 
the  rebate  provisions  which  had  been  in  force  for  several  years  past, 
and  wliich  had  occasioned  the  remonstrances  of  the  (jrovernment  of  the 
United  States,     A  copy  of  the  order  of  Ai)ril  4  is  inclosed. 

The  matter  became  the  subject  of  some  informal  conference  between 
the  Secretary  of  State  and  the  British  njinister,  and  resulted  in  a  pro- 
l>osal  from  the  latter  that  one  or  more  members  of  the  Canadian 
ministry  should  come  to  Washington  to  discuss  anew  the  (piestion  of 
the  removal  of  the  discriminating  tolls.  This  visit,  which  has  been 
contemplated  for  several  weeks  ]>ast,  has  Just  taken  place.  The  Brit- 
ish minister,  accom]>anied  by  Hon.  MacKenzic  Bowelland  Hon.  George 
E.  Foster,  two  members  of  the  Canadian  ministry,  were  received  at 
the  I)c[»artment  of  State  on  Fiichiy,  the  'M\  instant,  by  the  Secretary 
of  State.  The  undersigned,  who  had  participated  in  the  conferences 
of  February  last,  was  also  i)reseut,  bv  invitation  of  the  Secretary  of 
State. 

The  Canadian  connnissioners  o))encd  the  conference  by  stating  that 
there  s« cmed  to  exist  some  misunderstanding  as  to  the  conclusions 
reached  at  the  conference  of  February  last  resi>e<'ling  the  Canadian 
canal  t  )Ils.  They  had  been  infornie(l  that  the  American  cfmferees 
understood  that  an  assurance  had  been  gi\  en  that  the  discrimination 
which  tlu'y  alleged  had  been  created  against  American  ports  and  lines 
of  transportation  by  reason  of  the  Montreal  rebate  was  U)  be  rciio'^ed. 
This  did  lot  conform  to  their  nnilcrstanding,  as  all  the  assurance  they 
intended  to  give  was  that  the  complaint  (tf  the  Government  of  the 
United  States  should  be  taken  into  cojisideration  by  the  Canadian 
ministry  oti  their  leturn  to  Ottawa;  that  it  was  a  subject  about  which 
they  had  not  received  instructions  from  the  Dominion  Government,  and 
that  it  would  necessarily  have  to  be  referred  back  to  that  Government 
for  action.  The  c<»mmissioners,  however,  stated  that  they  had  been 
remiss  in  their  failui-e  to  have  the  Government  of  the  United  States 
advised  of  the  decision  of  the  Dominicui  (Toverument  to  reissue  the 
orders  in  council  as  to  the  canal  rebate  of  last  year. 

The  Secretary  of  State  said  that  he  had  understood  tlie  result  of  the 
conference  of  February  last  to  be  that  the  Canadian  commissioners 
had  given  assurance  that  the  causes  of  complaint,  as  ])resented.by  the 
Uiuted  States,  slnmld  be  removed,  and  in  this  statement  he  was  con- 
firmed by  the  undersigned.  But  the  Secretary  recognized  in  the  pies- 
ent  visit  of  the  commissioners  a  desire  im  tlunr  part  to  i-each  an  under- 
standing on  the  subject,  if  possible,  and  he  asked  what  proposition  they 
had  to  make  to  that  end. 

The  commissioners  then  said  that  they  did  not  regard  the  present 
canal  tolls  rebate  as  any  discrimination  against  the  United  States,  nor 
was  it,  in  their  opinion,  any  violation  of  either  the  letter  or  sjurit  of 
article  27  of  the  treaty  of  1871.  They  proceeded  at  some  length  to 
give  the  histoiy  of  the  treaty  of  1871,  and  e8i>eciallyof  articles  .iO  ami 
31  in  their  relation  to  article  27.  They  conteiuled  .that  the  Canadian 
canals  were  open  to  citizens  of  the  I' nited  States  on  exactly  the  same 
terms  as  to  British  subjects,  and  that,  hence,  the  stipulations  of  the 


\' 


I 


RECIPROCAL    TRADE    VVIT}1    CANADA. 


45 


] 


treaty  were  ('Oiiii)li«Ml  witli.  Tlicy  rocogfiiized  tin*  fact  that  the  tolls 
wer»'  so  arranged  as  to  favor  the  e.\i)ort  route  tlirou;;li  Montreal,  hut 
this  they  deemed  was  entirely  eonsistent  witli  the  treaty  and  jiistitied 
by  the  la  rye  e.\iien<liture  made  l>y  tin*  Canadian  (iovernnieiit  in  the 
construction  of  its  canal.>  for  this  c.\])ress  j)uri>osc. 

The  Se(Metary  of  iState.  in  rei)ly,  n'cojiiii/ed  the  correctness  of  the 
claim  of  the  commissioners  that  the  canals  were  open  to  citizens  and 
subjects  of  the  two  countries  alike,  hut  he  urg-ed  that  liie  discrimina- 
tion which  was  a^^ainst  Ameri<-an  pojts  and  lines  of  transjxnlatiitn  to 
the  seaboard,  was  in  plain  viohition  of  article  L*7  of  the  treaty;  and 
that  the  con<luct  of  Canada  was  in  marked  and  unfavorable  contrast  to 
that  of  th(i  United  States,  whicli  gave  free  transit  throuyli  its  canals  on 
theCrreat  Lakes  to  all  commerce  without  regard  to  the  mute  o\er  which 
it  passed  to  the  sea.  The  conference  of  Friday  continueil  for  two  hours 
without  agreement,  and  was  adjourned  till  the  next  day.  with  the  sug- 
gesticm  on  the  ]>art  of  the  Secretary  that  the  Cana<lian  commissioners  at 
the  next  session  subndt  s<nne  ]>roposition  for  an  adjustment  of  the  ques- 
tion. On  Saturday,  the  4th  instant,  at  11  a.  m.,  the  conferees  reassem- 
bled at  the  Dei)artment  of  State,  and  the  Canadian  commissioners,  in 
response  to  the  request  of  the  Secietary  of  State.  i)roposed  to  modify 
the  order  in  council  b\  alh»wing'  the  transshii)ment  in  American  ports 
of  cargoes  destined  for  Montreal  without  loss  of  reba  e,  on  <;on(lition 
that  the  free  mivngation  of  the  Hudson  liivcr  be  allowed  to  Canadian 
vessels  and  boats  from  the  end  of  the  New  York  State  (-anals  to  New 
York  ciiy. 

The  Secretary  of  State  d«M'lined  to  enteitain  this  projiosition  as  a 
satisfactory  settlement  of  the  question,  lie  claimed  that  under  the 
treaty  the  citizens  of  the  Cnited  States  had  a  right  to  use  the  Cana- 
dian canals  without  condition  as  to  the  i)la<'e  of  transshipnuMit  of  cargo, 
ami  that  it  was  not  proper  to  ask  any  further  consideration  for  the 
exercise  of  a  treaty  i  ght.  Besides,  it  was  ar  unusual  con<'ession  to 
grant  the  free  navigation  of  a  riAer  lying  wholly  ;  ithin  one  country  to 
the  citizens  of  another  country;  and  in  this  case  it  could  not  be  done 
without  legislation  of  Congress. 

The  Canadian  commissioners  said  they  did  not  feel  authorized  at 
jiresent  to  agree  to  a  riMuoval  of  the  rebate  on  the  canal  tolls,  but 
stated  that  on  their  return  to  Cajuida  tiu'  subject  should  be  again  sub- 
mitted without  delay  to  the  Dominioji  nunistiy,  and  thej'  ho]»e(l  to  be 
able  within  two  weeks  to  submit  to  the  (rovcrnment  of  the  I'nited 
States  some  new  proposition  on  the  subject.  It  was,  therefore,  agreed 
that  the  ])resent  <'onference  should  be  ternumited  with  the  understand- 
ing that  the  Canadian  (Jovernment  wouhl  be  expected  to  nnike  some 
further  communication  on  the  subject  to  the  Government  of  the  United 
States,  but  without  i)rejudice  to  any  action  which  the  latter  Govern- 
ment might  see  pro]>ei-  to  take. 

During  the  conference  the  British  minister  reierre<l  to  the  other  nnit- 
ters  which  had  been  agreed  upon  at  the  conference  in  Febrtnuy,  and 
which  his  vlovernnient  was  anxious  to  carry  into  etfect  as  soon  as  jms- 
sible.  to  rtit:  The  agreeuM'Ut  as  to  the  Alaska  boundary,  the  marking 
of  the  water  boundary  in  l*assama(|Uoddy  Bay,  the  api)ointmeiit  of  a 
joint  connnission  to  report  on  lishing  regulations,  and  tlie  concurrent 
legislation  on  the  lakes  as  to  wrecked  vessels.  The  StM-i-etaiy  of  State 
concurred  with  tin'  British  ministei-  that,  as  these  nmtters  had  no  de- 
pend«'nc<'  ujjon  tlu'  canal  tolls  «pu'stion,  the  agreement  res])e<*ting  them 
Khould  be  carrie<l  out  with  as  little  delay  as  possible. 
Ivespe<'tfully  suhndtted. 

John  W.  Foster. 


46 


KECIPROCAL    TRADK    WITH    CANADA. 


Dki'autmknt  oi  Stati:, 

WaiihiiKjtou,  March  !7,  ISf).'. 

Sii! :  I  have  the  honor  to  refer  to  the  iliHcuHsion  which  took  place  in  the  conferences 
lately  held  .it  this  Depiutiiient  between  the  Secretary  of  Stiite,  yourself,  and  the 
Canadian  coiiiiiiissioiierH,  respectinj;  the  discnmiuatiiii;  tolls  in  the  Canadian  canal* 
and  to  inclose  herewith  a  copy  of  a  letter  from  the  F, a l<c  Carriers'  Association,  flated 
Buti'alo,  N.  v.,  the  11th  instant,  coutaininy  Iij;ure8  showinu  the  amounts  of  the  dis- 
crimination iu  (luestion. 

The  l)e]»artment  will  f^reatly  ai)i»re<iate  your  courtesy  in  forwardinj;-  a  copy  of 
this  letter  at  once  to  the  Canadian  ai' Lhorities  for  tlit^ir  information  in  conneition 
with  the  promised  satisfactory  adjustment  of  the  (juestion  of  canal  tolls. 

Accept,  Mr.  M-nisrer,  the  assurances  of  my  iiigh  consideration. 

Wii.;  lAXi  y.  WnAHTox, 

Act  in;/  Secretary, 

Sir.Ji'i.iAN  Paunckkotk,  (J.  C.  M.  (J.,  K.  C.  B.,etc. 


Okkk  i;  oi'  i.AKK  Carrikks'  Association. 

Hiiffalo,  X.  v.,  Ma'ch  11,  1892. 

Di'.Ai!  Sin;  Answeriiifi  your  re([uest  for  ti<;iires  showinji  the  amou.it  of  discrimi- 
nating tolls  exacted  at  thi'  Welland  Caual  during  the  season  of  1891,  I  have  the  fol- 
lowing figures  covering  the  tratHc  reaching  the  port  of  ()g<lenshurg,  X.  V.,  l>v  water 
via  the  Welland  Canal  in  1H91 : 

Total  tolls  paid  on  ali  trafiHc  reaching  Ogdensliurg,  vj.i  Welland  Caual  in  1891, 
$55,087.05. 

Total  tolls  which  would  have  been  exa*.*^  -d  on  the  same  ti'attic  had  it  been  con- 
signed to  Montreal  or  any  port  east  of  Montreal,  jtrovided  it  had  gone  through  with- 
out breaking  bulk  or  been  transferred  at  an  intermediate-  Canadian  port,  .$7,3HO  94. 

Amount  of  tolls  collected  as  a  discrimination  against  an  American  port,  $16,67(».ll. 

In  addition  to  the  above,  tolls  to  the  amount  of  $5,719.56  were  collecteil  on  grain 
which  reached  Ogdeusburg  via  tlie  Wellainl  Canal,  was  there  transferred  and  for- 
warded to  Montreal,  This  grain  paiil  full  Wellaud  Canal  tolls  of  20  cents  a  ton, 
without  getting  the  relund.  It  was  also  refused  the  pass  tickets  ordinarily  given  at 
the  Welland  Canal  on  tratitic  bound  through  the  St,  Lawrence  canals,  which  tickets 
permit,  free  passage  through  the  .st.  Lawren<e  canals,  'llie  grain  in  (luestion  not 
only  paid  full  toll  at  the  Wellaud,  but  was  obliged  to  jiay  full  toll  through  the  St. 
Lawrence  canals  also. 

Tot.al  discrimination  against  Ogdensburg  tratiic  for  1891.  $.53,;^95.67. 

I  notice  several  newspaper  items  of  late  ]»ur]>ortiiig  to  come  from  Ottawa,  Onta- 
rio, to  the  effect  that  the  Canadian  Government  is  to  make  some  concessions  in  toll 
matters.  These  dispatches  indiciite,  however,  that  the  only  concession  which  the 
authorities  have  iu  mind  is  with  regard  to  the  ports  of  transfer.  You  will  remember 
that  last  year  the  refund  on  grain  cargoes  passing  through  the  Welland  Canal  and 
transferred  to  river  barges  for  Montreal  at  t^ome  intermediate  point  was  only  allowed 
in  ease  the  transshipment  took  place  at  a  Canadian  i)ort,  and  was  refused  wl  ere  such 
transshipment  took  place  at  an  American  port,  like  Ogdensburg.  The  press  dis- 
patches indicate  tliat  the  Canadian  authorities  will  this  year  pci'rait  the  refund  on 
Montreal  traffic  even  though  the  transshipment  takes  place  at  an  American  port. 
Doubtless  this  will  be  of  some  benefit  to  Ogdensburg.  but  it  will  leave  nntomhed 
the  principal  point  at  issue,  which  concerns  the  right  of  the  Canadian  authorities  to 
refund  niue-tcnths  of  the  cargo  tolls  on  Montreal  tratitic,  while  no  refund  is  made  in 
the  case  of  traffic  of  the  same  character,  passing  through  the  caual  in  the  same  direc-. 
tion,  and  bound  for  an  Amcriean  port  or  route  of  exi»ort. 
Yours,  very  respectfully, 

C.  H.  Kkkp, 
Secretary  Lake  Carriers'  Associaiion. 

H<ui.  WiM.iAM  F.  Wharton, 

First  Anni8t({tif  Secretary  of  State,   Washiiujton,  I).  C.  ,-',: 


-  " At  THK  GovKRXMi'.NT  TTfM'SE  AT  Ottawa, 

•  -  .  Monday,  till  4th  day  of  April,  189'3, 

Present:  His  excellency  tln^  govc^rnor-gcucral  in  council. 

His  excellenc.v  havitig  had  und<'r  consideration  the  tarifl'  of  tolls  on  the  cauals  of 
the  Dominion  and  the  several  (U'dcrs  in  council  umb^r  which  a  special  rate  has  from 
time  to  time  been  established  temporarily  on  certain  food  jtroducts  passing  through. 


RECirROCAL  TRADE  WITH  CANADA. 


47 


tho  Wi'llaiid  Cimal  iiii<l  rliroiijfli  flic  St.  Lfnvrcnct'  cjiiials.  for  HliipiiK-nt  af  Montreal 
and  ]>orts  cast  of  Montreal,  is  plcascil  toorder.  in  virtue  of  tlw  )io\vers  vested  in  liiin 
by  elia]>ter  87  of  the  Ue\  iscd  Statntes,  intitnled  "An  aet  res^»e(•tinJLt  the  department 
of  railways  and  canalK,'"  and  liy  and  with  tiie  advice  oftlie  (,>neen's  privy  eonneil  for 
Canada  tlnit  the  foHowin^'  amendments  shall  lie,  and  the  same  are  iuTeliy.  nnule  to 
the  tariif  of  tolls  in  force  on  the  said  canals,  \iy, : 

That  a  refund  he  nnide  id' a  porliou  of  the  canal  tolls  collected  on  wheat,  Indian 
corn,  pease,  barley,  rye.  oats,  tlaxseed,  and  buckwheat,  which  have  been  carried 
throu«;h  the  Wellaiid  Canal  and  the  St.  l>awrence  canals  to  Montreal  or  to  any  port 
east  of  Montreal,  in  all  eases  wlu're  the  said  iirodncts  so  carried  are  exported,  and  in 
such  eases  only.  , 

That  this  rebate  be  smdi  as  to  redneo  the  tolls  to  2  cents  jier  ton  of  the  said  prod- 
ucts or  any  of  them,  and  that  the  con<litions  of  such  refund  be  the  followiug: 

That  the  ]»ro(luct8  aforesaid  on  which  the  rebate  of  tolls  may  be  claimed  shall  be 
shown  to  have  been  originally  shipped  for  Montreal  or  for  some  port  east  of  .Montreal 
and  shall  be  shown  to  have  been  carried  to  Montreal  or  to  some  port  east  of  Montreal, 
and  actually  sent  out  oftlie  country. 

That  the  rij;ht  to  this  rebate  shall  not  bt;  lost  by  reason  of  intermediate  transship- 
ment, provided  that  the  place  of  suith  transshipment  is  one  within  the  Dominion  of 
Canada. 

That  the  right  to  this  rebate  shall  I'xtend  to  any  portions  of  cargoes  lightered  at 
Port  Colborne  and  reshipped  at  I'ort  Dalhousie,  and  also  to  shipments  of  the  above- 
named  products  made  from  any  Canadian  Lake  Ontario  port. 

That  i)ayment  of  the  amount  to  be  refunded  be  made,  from  time  to  time,  as  ear- 
goes  of  the  said  products  are  dispatched  for  export  from  Montreal  or  from  some  pori 
east  of  Montreal. 

That  this  order  in  council  remain  in  force  for  the  present  year,  1892,  only. 

John  J.  McGkk, 
.  Clerk  af  the  Privif  Councils 

The  Minister  OF  Railways  and  Canals. 


[No.  0.    Cimnls  Kevcnue.] 


In  carrying  out  the  provisions  of  the,  foregoing  order  in  council  (<ff  the  4th  of 
April,  1892),  the  c(dlector  at  Port  Ccdborne  will  collect  the  full  rate  of  t(dls  on  the 
Well'ind  Canal,  and  issue  an  official  recei)»t  therefor. 

The  authorized  reduction  of  tolls  will  l)epaid  by  the  Department  as  a  refund  upon 
evidence  being  furnished  that  the  conditions  of  the  order  in  council  have  been  com- 
plied with. 

The  vouchers,  pr-^perly  indorsed,  and  certiftcate  of  export,  must  in  all  rases  ac- 
company the  application  for  a  refund  of  the  tolls  referretl  to. 

B.    H.    TiCAKLKS, 

Chief  Clerk,  Canah  Revenue, 
Dkpautmknt  ok  Railways  ani>  Canals, 

Ottawa,  April  5,  1892, 


I  i 


I 


V 


An  act  to  enfc 


Be  it  en  a  I 

Stafi'H  of  A I 
i('(.'i|»ro<'al  a 
States,  on  SI 
ninety-two, 
tliat  the  pai 
tion  of  the  i 
connecting 
or  passengt 
or  is  made  ( 
wise  Avliicli, 
Canal,  now 
ciprocally  v 
shall  be  liis 
time  and  to 
deem  Jnst, 
Canal,  so  f; 
ernment  so 
United  Sta 
transit  to  t 
whether  ca: 

In  such  (■ 
lected,  and 
description 
exceed  Ave 
the  Preside 
upon  i'reiyli 
any  port  w 
ern  bouuda 
Iviver,  the  < 
boundary  o 

Sec.  2.  i 
as  shall  b( 
require  the 
amount  an^ 
the  destina 
such  cargc 
above  nam 
nislied  sue] 
landed  at  f^ 
of  tolls  whi 
constitute  ; 
wherever  a 

Approve 


frUBLIC— No.    154.) 


,. 


An  act  to  enforce  reciprocal  commercial  relations  lictwoen  the  United  States  and 
J  •  Canada,  and  for  other  purposes. 

Be  it  enacted  try  tlie  Senate  and  House  of  Represent aiiveH  of  the  United 
States  of  America  in  Contjresx  ansvmldvd,  Tliat,  with  a  vi<'\v  of  securing 
reciprocal  advantages  for  tlio  citizens,  i)orts,  antl  vessels  of  the  United 
States,  on  and  after  the  first  day  of  Anj^nst,  eighteen  hundred  and 
ninety-two,  whenever  and  so  often  as  the  I'resident  shall  be  satisfied 
that  the  passage  tiirongh  any  canal  or  lock  connected  with  the  naviga- 
tion of  the  Saint  Lawrence  River,  the  Great  Lakes,  or  the  water  ways 
connecting  the  same,  of  any  vessels  of  the  United  States,  or  of  cargoes 
or  [lassengers  in  transit  to  any  port  of  the  United  States,  is  prohibited 
or  is  made  ditlicnlt  or  burdensome  by  the  imposition  of  h)lls  or  other- 
wise which,  in  view  of  the  fre<'  passage  through  the  Saint  Marys  Falls 
Canal,  now  permitted  to  vessels  <»f  all  nations,  he  shall  deem  to  be  re- 
cii>rocally  unjust  and  unicasonable,  he  shall  have  the  i>ow(»r,  and  it 
shall  be  his  duty,  to  suspeiul,  by  proclamation  to  that  effect,  for  such 
time  and  to  such  extent  (including  absolute  prohibition)  as  he  shall 
deem  Just,  the  light  of  free  passage  through  the  Saint  Marys  Falls 
Canal,  so  far  as  it  relates  to  vessels  owne<l  hy  the  subjects  of  the  gov- 
ernment so  discriminating  against  the  citizens,  i)orts,  or  vessels  of  the 
United  States,  or  to  any  cargoes,  portions  of  cargoes,  or  passengers  in 
transit  to  the  ports  of  the  government  making  such  discrimination, 
whether  carried  in  vessels  of  the  United  States  or  of  other  nations. 

In  such  case  and  during  such  suspension  tolls  shall  be  levied,  col- 
lected, and  j)aid  as  follows,  to  w'it:  Upon  freight  of  whatever  kind  or 
description,  not  to  exceed  two  dollars  per  ton;  upon  passeng<'rs,  not  to 
exceed  five  dollars  each,  as  shall  be  from  time  to  time  determined  by 
the  President:  Prow/tY/,  That  no  tolls  shall  be  charged  or  collected 
upon  freight  or  passengers  carri<'d  to  and  landed  at  Ogdensbnrg,  or 
any  port  west  of  Ogdensbnrg,  and  south  of  a  line  drawn  from  the  north- 
ern boundary  of  the  State  of  Xew  York  through  the  Saint  Lawrence 
Iviver,  th<^  (rreat  Lakes,  and  their  connecting  channels  to  the  northern 
boundary  of  the  State  of  Minnesota. 

SEf.  2.  All  tolls  so  charged  shall  be  collected  under  such  regulations 
as  shall  be  prescribed  by  the  Secretary  of  the  Treasury,  who  may 
require  the  master  of  eacli  vessel  to  furnish  a  sworn  statement  of  the 
amount  an<l  kind  of  cargo  and  the  number  of  i)assengei's  carried  and 
the  destination  of  the  same,  and  such  ])i<)of  of  the  actual  delivery  of 
such  cargo  or  ]»assengers  at  some  })ort  or  place  within  the  limits 
above  named  as  he  shall  deem  satisfactory;  and  until  such  })r(»of  is  fnr- 
nished  such  freight  and  i)assengers  may  be  considered  to  have  been 
landed  at  some  port  or  place  outside  of  those  limits,  and  the  amount 
of  tolls  which  would  have  accrued  if  they  had  been  so  delivered  shall 
constitute  a  lien,  which  may  be  enforceil  against  the  vessel  in  <lefanlt 
wherever  and  whenever  found  in  the  waters  of  the  United  States. 

Approved,  Jidy  2(5,  18*J2. 


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BY  THH  PRHSIDHXT  OF  THE  UI 


A    PROCLAJ 


Whereas,  by  an  act  of  Congress 
act  to  enforce  reciprocal  commercial  re 
and  Canada,  and  for  other  purposes," 
'  securing  reciprocal  advantages  for  the 
'  United  States,  on  and  after  the   first 
'  and  ninety-two,  whenever  and  so  often 
'  that  the  passage  through  any  canal  or 
'  of  the  Saint   Lawrence   River,  the  Gr 
'  necting  the  same,  of  any  vessels  of  tl 
'  passengers  in  transit  to  any  port  of  th 
'  made   difficult  or  burdensome   by  tht 
'  which,  in  view  of  the  free  passage  thr 
'  now  permitted  to  vessels  of  all  nation- 
'unjust  and  unreasonable,  he  shall  have 
'  to  suspend,  by  proclamation  to  that  ef 
'tent  (including  absolute   prohibition)  i 
'  free  passage  through  the  Saint  Marys 
'  vessels  owned  by  the  subjects  of  the  go' 
'  the   citizens,   ports,  or  vessels  of  the   1 
'  portions  of  cargoes,  or  passengers  in 
'ment  making  such  discrimination,  whet 
'States  or  of  other  nations. 

"  In  such  case  anil  durinjj  such  su 
'  lected,  and  paid  as  follows,  to  wit :  U 
'  description,  not  to  exceed  two  dollars 
'  exceed  five  dollars  each,  as  shall  be  frc 
'President;  Provided,  That  no  tolls  sh 
'  freight  or  passengers  carried  to  and  1; 
'west  of  Ogdensburg,  and  south  of  a  lir 
'ary  of  the  State  of  New  York  throng 
'  Great  Lakes,  and  their  connecting  cha 
'  the  State  of  Minnesota. 

"  .Sei  .  2.  All  tolls  so  charged  shall  1 
'  as  shall  be  prescribeil  by  the  Secretary 
'  the  master  of  each  vessel  to  furnish  a  s 
•kind  of  cargo  and  the  number  of  i)ass 
'  of  the  same,  and  such  proof  of  tlu;  acl 
'  sengers  at  some  port  or  place  within  tli 
'  deem  satisfactory  ;  and  until  sucli  proo 
'  sengers  may  be  considered  to  have  l)e 
'outsiile  of  those  limits,  and  the  amount 


BXT  OF  THE  UNITED  STATES  OF  AMERICA. 


A    PROCLAMATION. 

1  act  of  Congress  approved  July  26,  1892,  entitled  "An 
rocal  commercial  relations  between  the  United  States 
r  other  purposes,"  it  is  provided  "That,  with  a  view  of 
1  advantages  for  the  citizens,  ports,  and  vessels  of  the 
and  after  the  first  day  of  August,  eighteen  hundred 
lenever  and  so  often  as  the  President  shall  be  satisfied 
irough  any  canal  or  lock  connected  with  the  navigation 
-ence  River,  the  Great  Lakes,  or  the  water  vv'ays  con- 
of  any  vessels  of  the  United  .States,  or  of  cargoes  or 
sit  to  any  port  of  the  United  States,  is  prohibited  or  is 
burdensome  by  the  imposition  of  tolls  or  otherwise 
he  free  passage  through  the  St.  Marys  Falls  Canal, 
vessels  of  all  nations,  he  shall  deem  to  be  reciprocally 
enable,  he  shall  have  the  power,  and  it  shall  be  his  duty, 
iclamation  to  that  effect,  for  such  time  and  V-  such  e.\- 
solute  prohibition)  as  he  shall  deem  just,  the  right  of 
gh  the  Saint  Marys  Falls  Canal,  so  far  as  it  reflates  to 
le  subjects  of  the  government  so  discriminating  against 
or  vessels  of  the  United  States,  or  to  any  cargoes, 
s,  or  passengers  in  transit  to  the  ports  of  the  govern- 
discrimination.  whether  carried  in  vessels  of  the  United 
nations. 

ind   during  such  suspension  tolls  shall   be  levied,  col- 
s  follows,  to  wit:   Upon    freight  of      'latever  kind   or 
exceed  two  dollars  per  ton  ;  upon  \>     sengers,  not  to 
each,  as  shall  be  from  time  to  time  dei   imined  by  the 
</,  I'hat   no  tolls  shall   be  charged   or  collected   upon 
rs  carried  to  and  landed  at  Ogdensburg,  or  any  port 
•g,  and  south  of  a  line  drawn  from  the  northern  bound- 
New  York   through   the  Saint    Lawrence   River,  the 
heir  connecting  channels  to  the  nortlu.'rn  boundary  of 
sola. 

s  so  charged  shall  be  collected  under  such  regulatif)ns 

1  by  the  Secretary  of  the  Treasurj-,  who  may  require 

vessel  to  furnish  a  sworn  statement  of  the  amount  and 

lir  number  of  passengers  carried  and  iIk!  destination 

ch  proof  of  the  actual  lU'livery  of  such  cargo  or  pas- 

rt  or  place  within  the  limits  above  named  as  he  shall 

antl  until  sucli  proof  is  furnishetl  such  freight  and  |)as- 

sidered  to   have  been   landed  at  some  port  or  place 

ts,  ami  the  amount  of  tolls  which  would  have  accrued 


"  if  they  had  been  so  delivered  shall  constitute  alien,  which  may  be  enforced 
"against  the  vessel  in  default  wher.  ver  and  whenever  found  in  the  waters 
"of  the  United  States,"  and  i- 

Whereas,  the  Government  of  the  Dominion  of  Canada  imposes  a  toll 
amounting  to  about  20  cents  per  ton  on  all  freight  passing  through  the 
Welland  Canal  in  transit  to  a  port  of  the  United  States,  and  also  a  further 
toll  on  all  vessels  of  the  United  States  and  on  all  passengers  in  transit  to  a 
port  of  the  United  States,  all  of  which  tolls  are  without  rebate.     And 

Whereas,  the  Government  of  the  Dominion  of  Canada  in  accordance 
with  an  Order  in  Council  of  April  4,  1892,  refunds  18  cents  per  ton,  of  the 
20-cent  toll  at  the  Welland  Canal,  on  wheat,  Indian  corn,  pease,  barley, 
rye,  oats,  flaxseed  and  buckwheat,  upon  condition  that  ihey  are  originally 
shipped  for  and  carried  to  Montreal  or  some  port  east  of  Montreal  for  ex- 
port, and  that,  if  transhipped  at  an  intermediate  point,  such  transhipment 
is  made  within  the  Dominion  of  Canada,  but  allows  no  such  nor  any  other 
rebate  on  said  products  when  shipped  to  a  port  of  the  United  States  or 
when  carried  to  Montreal  for  export  if  transhipped  within  the  United  States. 
And  V 

Whereas,  the  Government  of  the  Dominion  of  Canada  by  said  system 
of  rebate  and  otherwise  discriminates  against  the  citizens  of  the  United 
States  in  the  use  of  said  Welland  Canal  in  violation  of  the  provisions  of 
Article  27  of  the  Treaty  of  Washington  concluded  May  8,  1871.     And 

Whereas,  said  Welland  Canal  is  connected  with  the  navigation  of  the 
Great  Lakes,  and  I  am  satisfied  that  the  passage  through  it  of  cargoes  in 
transit  to  ports  of  the  United  States  is  made  difficult  and  burdensome  by 
said  discriminating  system  of  rebate  and  otherwise,  and  is  reciprocally  un- 
just and  unreasonable, 

N(^w,  therefore,  I,  Ben-jamin  Harrison,  President  of  the  United  States 
of  America,  by  virtue  of  the  power  to  that  end  conferred  upon  me  by  said 
act  of  Congress  approved  July  26,  1892,  do  hereby  direct  that  from  and 
after  September  i,  1892,  until  further  notice,  a  toll  of  20  cents  per  ton  be 
levied,  collected,  and  paid  on  all  freight  of  whatever  kind  or  description 
passing  through  the  St.  Mary's  F"alls  Canal  in  transit  to  any  port  of  the  Do- 
minion of  Canada,  whether  carried  in  vessels  of  the  United  States  or  of  other 
nations ;  and  to  that  extent  I  do  hereby  suspend  from  and  after  said  date  the 
right  of  free  passage  through  said  St.  Mary's  Falls  Canal  of  any  and  all  car- 
goes or  portions  of  cargoes  in  transit  to  Canadian  ports. 

5u  testimony  MlflCVeol  I  ha\e  hereunto  set  my  hand  and  caused 
the  seal  of  the  United  States  to  be  affixed. 

Done  at  the  City  of  Washington  this  i8th  day  of  August,  in  the  year  of 
our  Lord  one  thousand  eight  hundred  and  ninety-two,  and  of 
[seal.]     tlie  Independence  of  the    United  States  of   America  the  one 
hundred  and  seventeenth. 

BENJ  HARRISON 

By  the  President : 

JOHN  W.  FOSTER, 

Secretary  of  State. 


